SAFARICOM’S KENYA  BUSINESS   EARNS  A RECORD    USD1 BILLION  PROFIT  BEFORE TAX  AND INTEREST

During  Safaricom’s virtual   Annual General Meeting (AGM) for the financial year  ending 31 March 2024 ,  shareholders approved a final dividend of Kshs.  0.65 per share. This   amounted   to Kshs.  26.04 billion. Following an interim dividend of Kshs. 0.55 per share, totaling Kshs.  22.04 billion, that was paid in March 2024, this brings the total dividend payout for the year to Kshs. 1.20 per share, which is equivalent  to  Kshs.  48.08 billion.

Landmark number

In  his  presentation,  Peter Ndegwa,   Safaricom’s  Group  CEO  said : “In the financial year under review, the business displayed significant resilience in producing outstanding growth in both our top and bottom lines. This enabled us to achieve a major milestone, attaining, in our Kenyan business alone, earnings of more than USD1 billion before tax and interest.”  He added :  “Safaricom is the first company in the Eastern Africa region to attain this landmark number.”

The dividend will be payable on or about 31 August 2024 to the shareholders on the register  as at the close of business on 31 July 2024. Mr Adil Khawaja, Chairman of the board said: “I am encouraged by the resilience demonstrated to deliver a very strong set of financial results, which enabled us to pay a similar dividend to last year’s despite the startup losses in Ethiopia.”  He added : “  This success is attributable to strong strategy execution which has once again guided our decisions to deliver for our shareholders while giving more value to our customers.”

Commitment

While the company delivered a strong financial performance, the year was marked by a challenging economic environment in both Kenya and Ethiopia. High interest rates, inflation, and currency fluctuations  adversely   impacted  on   disposable income and business operations. Despite these headwinds, Safaricom demonstrated its commitment to delivering shareholder value through strategic investments and strong strategy execution.

Safaricom   is well-positioned for continued growth in the short, medium, and long term. The company anticipates breaking even in Ethiopia by the end of its fourth year of operations. In Kenya, Safaricom’s new vision and strategy will drive growth as it works towards becoming Africa’s leading technology company by 2030.