BUSINESS

Safaricom Shakes Market With a Hefty Dividend

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Safaricom Dividend
Safaricom PLC Chief Finance Officer Dilip Pal, CEO Peter Ndegwa, Chairman Adil Arshed Khawaja and Ag Company Secretary Ms. Linda Mesa Wambani present the AGM report moments after the 16th Safaricom Annual General Meeting held at Safaricom headquarters in Nairobi today
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Safaricom PLC today held its Annual General Meeting (AGM) virtually, where shareholders approved a final dividend of Ksh0.65 per share, amounting to Ksh26.04 billion for the financial year ended 31 March 2024.

Following an interim dividend of Ksh0.55 per share, totalling Ksh22.04 billion, that was paid in March 2024, this brings the total dividend payout for the year to Ksh1.20 per share, representing a total of Ksh48.08 billion.

“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 USD1 billion before tax and interest (EBIT),” said Mr Peter Ndegwa, Safaricom PLC Group CEO. “Safaricom is the first company in the Eastern Africa region to attain this landmark number,” he added.

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The dividend will be payable on or about 31 August 2024 to the Shareholders on the Register of Members as at the close of business on 31 July 2024.

Mr Adil Khawaja, Chairman of the Board said: “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.”

While the company delivered a strong financial performance, the year was marked by a challenging economic environment in both Kenya and Ethiopia. High interest rates, inflation, and currency fluctuations impacted disposable income and business operations. Despite these headwinds, Safaricom demonstrated its commitment to delivering shareholder value through strategic investments and strong strategy execution.

Safaricom Group is well-positioned for continued growth in the short, medium, and long term. The company anticipates breaking even in Ethiopia by the end of its fourth year of operations. In Kenya, Safaricom’s new vision and strategy will drive growth as it works towards becoming Africa’s leading technology company by 2030.

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Written by
BT Reporter -

editor [at] businesstoday.co.ke

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