Safaricom has announced plans to provide one hundred per cent 4G network coverage across the country by the end of this year. This is part of its growth strategy that is focused on being the technology partner of choice.
Celebrating its twentieth anniversary this year, Safaricom has embarked on its next phase of growth that will be driven by a vision to become a purpose-led technology company by 2025. Mr. Peter Ndegwa, the telco’s chief executive officer, made the announcement as he released financial results for the half year ended 30th September, 2020 which saw the net profit decrease by six per cent to Kshs. 33.07 billion, with service revenue hitting Kshs. 118.41 billion.
“Our business has proved to be resilient despite the tough operating environment. There is no doubt that Covid-19 has dealt a huge blow to many people not just in Kenya, but across the globe. This has been a tough period for businesses—small and large alike— as well as our customers. We are committed to walk through this journey together,” noted Mr Ndegwa.
Despite a four point eight drop in service revenue, Safaricom increased capital expenditure by twenty five point five per cent to Kshs. 22.75 billion, signalling investment commitment to building a network infrastructure that supports the country’s economic development. Voice service revenue dropped by six point five per cent to Kshs. 40.19 billion, while M-Pesa revenue dropped by fourteen point five per cent to Kshs. 35.89 billion.
“As we go into our third decade as an organization, we aim to create a technology business by developing new digital ecosystems in health, agriculture and education sectors as we aim to provide digital solutions for our customers,” emphasized Mr Ndegwa.
“The board is encouraged by the positive trajectory witnessed going into second quarter of our financial year. We remain steadfast in ensuring that the management continues to build on the strong company position that has been established over the last twenty years, running a purpose-driven business, that continues to transform lives and drive future growth,” said Michael Joseph, chairman, Safaricom’s board of directors.
The continued focus on customers led to a ten point two increase in one month active subscribers for the period, across all the revenue streams. With the new business strategy and the renewed focus on the customer, Safaricom expects to build on the momentum that has been gained during the second quarter of the period under review.
“Among the customers we will prioritise include micro small and medium enterprises (MSMEs) as well small and medium enterprises (SMEs) whom we will empower through tailor-made services and products to enable them manage their businesses better,” said Mr. Ndegwa. These innovative products include : ‘pochi la biashara’ that will enable entrepreneurs to separate business and personal wallets as well as Lipa Na M-Pesa merchant app that enables them to effectively manage their business tills,” said Mr Ndegwa.