Safaricom has announced plans to provide 100% 4G network coverage across the country by end of this year.
Safaricom Chief Executive Officer Peter Ndegwa made the announcement as he released financial results for the half-year ended 30th September 2020 which saw net profit decrease by 6.0% to Ksh. 33.07 billion with service revenue hitting Ksh. 118.41 billion.
“Our business has proved to be resilient despite tough operating conditions. 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—and our customers. We are committed to walk through this journey together,” noted Mr. Ndegwa.
Despite a 4.8% drop in Service Revenue, Safaricom increased capital expenditure by 25.5% to Ksh. 22.75 Billion, signaling investment commitment to building a network infrastructure that supports the country’s economic development. Voice service revenue dropped by 6.5% to Ksh. 40.19 billion while M-PESA revenue dropped by 14.5% to Ksh. 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,” added Mr. Ndegwa.
The continued focus on customers led to a 10.2% increase in one month active subscribers for the period, with customers growing across all revenue streams.
With the new business strategy and the renewed focus on the customer, Safaricom expects to build on this momentum that has been gained during the second quarter of the period under review.
“Among the customers, we will prioritize includes MSMEs & SMEs who we will empower through tailor-made services and products to enable these entrepreneurs to manage their businesses better. This includes the innovative product, Pochi la Biashara, that will allow them to separate business and personal wallets and Lipa Na M-PESA Merchant App that enables small businesses to effectively manage their business tills,” Mr. Ndegwa concluded.