FEATURED STORY

Safaricom scraps M-Pesa charges as profit soars

Share
Safaricom CEO, Bob Collymore: Technology offers huge opportunity to enhance the quality of life in neighbourhoods across the country.
Share

Safaricom has reported net profit of Ksh23.9 billion in the six months to September 30, a 32 per cent jump compared to similar period last year. Revenue from its mobile money service, known as M-Pesa, rose 33.7 percent to Sh25.9 billion from Sh19.35 billion  a year earlier.

The figures for the telecom company, which is 40 percent owned by Britain’s Vodafone and has Kenya’s biggest subscriber base, cover the half-year period from April 1 to Sept. 30. The company is also increasing its guidance for the full year’s earnings before interest, tax, depreciation and amortization (EBITDA) to between 94 billion to 97 billion shillings, said Chief Executive Officer Bob Collymore.

Highlights

  • Total customer base grew by 6% to 26.6m
  • Service revenue growth of 15.4% to Kshs 98.0bn
  • Voice service revenue grew by 1.1% to Kshs 45.7bn
  • Messaging revenue grew by 8.1% to Kshs 8.6bn
  • 12.2% increase in 30 day active M-PESA customers to 17.6m
  • M-PESA revenue increased by 33.7% to Kshs 25.9bn
  • 13.7% increase in 30 day active mobile data customers to 14.9m
  • 46.3% growth in mobile data revenue to Kshs 13.4bn
  • Fixed service revenue growth of 29.1% to Kshs 2.40bn

Mr Collymore said: “Delivering our financial inclusion agenda remains at the core of our strategy to transform lives. To further deepen the financial inclusion and in response to our customers’ feedback, we have reviewed charges for person-to-person and Lipa Na M-PESA transactions under Kshs100. Under the “M-PESA Kadogo” it will be free to send values of KShs100 and below.”

“We have done this to empower the people who support this company the most – the mama mbogas, the small businessmen and the micro agents who form our network. We shall continue to grow the adoption of savings and uptake of loans through M-PESA, and grow cashless business payments and transactions.”

[crp]

Written by
BT Reporter -

editor [at] businesstoday.co.ke

1 Comment

  • Usual bullshit, Safcom needs to reduce its MPESA charges not just for a hundred bob. they also needs to scrap sending charges for all amounts. This should be common sense; when I go to a bank or an Bank Agent to send money to someone, they do not charge me anything to send, neither do they refuse you to deposit directly to the receiver’s account.

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...

Geraldine Sande, Channel Sales Leader for Schneider Electric East Africa
FEATURED STORY

How Working With ‘Glocal’ Original Equipment Manufacturers Can Empower East Africa’s Channel Partners For Success

Channel partners in East Africa, including resellers, distributors, system integrators and panel...

Treasury CS John Mbadi
FEATURED STORY

Understanding Tax Amendment Bills: How The New Laws Will Affect Kenyans

The government has announced several amendments to the existing tax laws to...

Prime Cabinet Secretary and Cabinet Secretary for Foreign & Diaspora Affairs
FEATURED STORY

Inside Kenya’s 60 Years of Diplomatic Journey

Kenya is set to commemorate 60 years of diplomacy this week starting...