Safaricom continues to boost Kenya’s economy

Safaricom Twaweza logo

Safaricom’s contribution to the country’s economy has been further exemplified after the telco revealed that it injected Ksh. 601 billion into the economy in the year ended March 2019 up from Ksh. 543 billion registered in a similar period last year.

The Ksh. 58 billion increase translates to an 11 percent surge in the telco’s value to the Kenyan economy and a 6.3 percent contribution to the country’s Gross Domestic Product (GDP). According to the firm’s 2019 True Value Report, an annual report that was released yesterday, the contribution came in the form of jobs, value chain opportunities for other businesses, taxes and dividends to shareholders as well as payments to contractors and suppliers.

“Our latest True Value Report indicates that the value to the Kenyan society created by Safaricom increased by 11 percent to Ksh. 601 billion, 9.6 times the financial profit the company earned during the same period,” says Safaricom in the annual report.

According to the report, Safaricom has supported 979,000 direct and indirect jobs in the period under review with the telco paying Ksh. 16.93 billion, in salaries, pensions, contributions, medical cover and other benefits, to its 6,323 employees. The firm similarly created jobs for approximately 167,000 M-Pesa agents and 123,000 Lipa na M-Pesa merchants by the end of March.

In terms of tax remitted to the taxman, Safaricom paid Ksh. 98.13 billion to the government in duties, taxes and license fees last year, after registering a net profit of 63.4 billion in the period.

“This increased the total duties, taxes and fees paid since inception to Ksh. 698.52 billion,” Safaricom said in the report.

The telco similarly set aside approximately Ksh. 50.08 billion in dividends to shareholders in the 2018/19 financial year. This included a special dividend of Ksh. 0.62 per share amounting to Ksh. 24.84 billion as well as the first and final dividend of Ksh. 1.25 per share amounting to Ksh. 25.24 billion. In this regard, the Treasury will earn Ksh. 26.22 billion in dividends from the telco giant in which it holds a 35 percent stake.

The dividends will however be remitted to the company’s 560,018 shareholders on November 30.

ALSO READ: Safaricom will choose Collymore successor: Government


Please enter your comment!
Please enter your name here