NAIROBI, Kenya- Safaricom’s shareholders have approved a final dividend of KSh0.65 per share, amounting to KSh26.04 billion for the fiscal year ending March 31, 2024.
This approval follows an interim dividend of KSh0.55 per share, paid in March 2024, bringing the total dividend payout for the year to KSh1.20 per share, or KSh48.08 billion.
Despite economic challenges, Safaricom has maintained a strong financial position, reporting a modest 1.2pc increase in profit after tax for the full fiscal year.
The telco’s robust performance was largely driven by a surge in service revenue from its Kenyan operations, especially through its popular mobile money platform, M-PESA.
However, its Ethiopian subsidiary’s performance was less impressive, though the board remains optimistic about its potential to break even soon.
“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 US$1 billion before tax and interest (EBIT),” said Peter Ndegwa, Safaricom PLC Group CEO.
Notably, Safaricom is the first company in the Eastern Africa region to achieve this landmark figure.
The approved dividend will be payable on or about August 31, 2024, to shareholders registered by July 31, 2024.
Safaricom’s performance was commendable despite facing numerous economic hurdles, including elevated interest rates, inflation, and currency fluctuations.
These factors have impacted both disposable incomes and business operations in Kenya and Ethiopia.
“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. 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,” said Adil Khawaja, Chairman of the Board.
During the virtual 16th Annual General Meeting, shareholders raised concerns about data privacy following recent accusations of data leaks by Safaricom.
In response, the company reiterated its commitment to user privacy and data protection, refuting claims that it shares customer data with external agencies.
“There has been a lot of speculation that Safaricom is being coerced to share data with relevant agencies. We want that assurance that even if there has been a lot of news that you have been coerced to share data, you will not be able to share it,” expressed a concerned shareholder during the meeting.
In addition to financial updates, Safaricom announced upcoming changes to its board.
Safaricom’s ability to sustain its financial health and shareholder value, even amid economic uncertainties and operational challenges, underscores its position as a leading telecommunications company in the region.
