No need to panick.It's a planned exit and there must be a succession plan in place.

I think irrespective of who is at the helm, the general market outlook for telco's is not too rosy....here is why:

1 - The regulation requiring the registration of all SIMS will cause a dip in subscriber numbers (and on the upside, operators will know who owes them allegiance out of the multiple SIM subscribers). Case in point, after similar legislation in RSA, between MTN and Voddacom, they lost abt 2 million subscribers (the positive effect is in a slightly increased ARPU - i.e. instead of djinn spending 1000 on Zain and 1000 on Yu - I spend 2000 on one network).

On this point, and looking at Safaricom's claim to 15 million SIMS, this will show real subscriber numbers - the use of 0700 prefix should indicate they have now 21 million subscribers (0720-0729 = 10 mill approx, 0710-0719 10 mill apporx) but really they have issued 21 million SIM cards (including half a dozen which I do not use from handset promotions over the last 6 years). So even with the 15 million, I do not think so - more like 12 million ACTIVE subscribers.

2 - There is very harsh competition in the data market (not just here but elsewhere). Right now the marketing of data is aimed at driving usage through bundles which is causing lower quality of service (both voice and data). Prices keep coming down, bundles grow bigger and bigger. Voice, SMS and Data bundles. So while the market base grows, the revenues will grow only very slightly - if the market base grows 20%, revenues may only be one third that. Pressures will continue to intensify as consumers demand more for less (as was the promise of fibre optics). To stay ahead more COSTLY investment is needed to migrate from GSM to UMTS, esp for data. On the upside, unified licences mean that mobile operators carry a big chunk of the consumer market (edging out AK and other such players).

3 - Mobile number portability - if this goes through as intended by CCK, it will give liberty to those subscribers who want to keep their number without enduring mediocre quality of service, non-existent customer service. I'd say some 10-15% will vote with their feet if this comes through.

My two bits.

Fro SCOM website:

"Chief Commercial Officer - Peter Arina

Peter Arina joined Safaricom in November 2004 as Chief Commercial Officer responsible for the Commercial Division which comprises the Marketing, Sales, Customer Management and Commercial Planning departments

Mr. Arina previously worked in Unilever Kenya for 15 years having started his marketing and sales management career there in 1989. He gained extensive experience in Marketing and Sales through holding various positions in those functions. He became the Customer Development Director (Sales Director) reporting to the Chief Executive Officer (East Africa) in May 2001, a position he held until October 2004.

Mr. Arina is a Kenyan citizen and holder of a Bachelor of Commerce (Marketing) degree from the University of Nairobi."

He is not the COO!!!

The market has valued MJ at 5cents!! That is how much the stock has lost following the news!! MJ, oruch!!!

GG The fall may not be necessarily due to MJ exit....there is a general fall in the share prices this week. the indices have been falling...why , I dont know...

@GG 5 cents x 40bn = 2bn... That is more than my entire clan's net worth!!!

change is good it the high time we got someone new at that place. i appreciate that MJ has done alot for the company but it time to leave hi legacy intact..

Let me argue my point differently. Scon lost less than 1% of its value on the news of the retirement. @fundaah made it worse by saying the drop was due to other forces, not MJ. This means MJ has no 'CEO effect' on scon. So why have we always said that scon = MJ and MJ = scon???

GG & VVS, you are onto something there....is there any precedent in the markets where a dip is experienced on the actual date of the handover? In short, can we say that's it, when we are done and dusted the market merely shrugged off MJ's departure as inconsequential?

when Eric Kimani left sameer question was does a company make a man or the man the company? same when mugo kibati left EA Cables, same was the uchumi inside trade when he left kcb... I know there is no parallels here but...

Mj really fouled up when sometime last year got into jet hoping to "lure" foreigners to invest in safcon share. It is NOT the business of CEO's to excite shareholders!..bottomline...superprofits are unsustainable..with all the media circus safcom has done in advertising over 2009..i'm really keen to see what the impact on profitability is..

Whatever the financials..divide by 40 freakin billion..then see how many shares u need to have inorder to get a satisfatory proprtion in earnings..