The board has retained Safaricom dividend at Ksh0.55 per share for the interim period, which translates to Ksh22.04 billion, despite facing a tough financial year, especially at its Ethiopian operation that has had significant hurdles.
The company said the dividend payout plan comes in the face of a challenging half-year period that saw the company’s net profit decline by 17.7% to Ksh28.1 billion. This is exciting news for Safaricom investors who were expecting their return on investment to be lower in line with half-year performance.
The interim dividend was approved by Safaricom’s board on 12th February 2025 and will be paid to shareholders in the register as at 3rd March. Shareholders will receive their dividend on 31st March this year, Safaricom said in. a statement.
This is the second consecutive year the company has maintained its mid-year dividend at Ksh0.55 from Ksh0.64 per share in 2022. Safaricom’s recent financial performance has been hit by currency challenges in Ethiopia, where a depreciation of the local currency resulted in foreign exchange losses of Ksh17.7 billion.
Despite these setbacks, Safaricom’s market performance has remained steady, with its share price on the Nairobi Securities Exchange surging by 34% over the past year to reach Ksh17.70.
> 5 Main Reasons Customers are Always Dumping Their Banks
The dividend distribution will see the Kenyan government, which holds a 35% stake through the National Treasury, receive approximately Ksh 7.7 billion. Vodafone and Vodacom, joint owners of a 40% stake, will collect Ksh 8.8 billion, while retail investors will share the remaining Ksh 648 million.
Historical dividend patterns suggest Safaricom might maintain its final dividend at Ksh0.65 per share, according to Business Daily analysis, as the company typically aligns changes in its interim and final dividend payments.
>> A Comprehensive Guide to the Best Radio Shows in KenyaÂ
Leave a comment