Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Digital Inclusion

Safaricom Boasts Increasing Positive Impact on Kenyan Economy

Article Image
Safaricom is pretty pleased with itself. Kenya's leading mobile operator claims its financial contribution to the country's economy increased 17% in the 2016/17 fiscal year.

According to Safaricom's calculations, it created 486 billion Kenyan Shillings (US$4.7 billion) "total value" for Kenyan society, based on a set of criteria created by accountancy giant KPMG as part of its "True Value" methodology that accounts for direct and indirect value creation.

The economic impact of Safaricom's operations is the greatest contributor to the total value created, noted the operator in a statement that accompanied the publication of its Sustainability report. In the financial year to March 31, 2017, Safaricom reported annual revenues of KES212.9 billion ($2.06 billion) and a net income of KES48.4 billion ($469 million).

Safaricom Chairman, Nicholas Nganga (center left) and Safaricom CEO Bob Collymore (center right) mark the launch of the Safaricom Sustainability Report 2017 at the company's headquarters. Looking on is UN Resident Coordinator and UNDP Resident Representative, Siddharth Chatterjee (far left) and Ivy Waikwa, a student at the Mpesa Foundation Academy (far right).
Safaricom Chairman, Nicholas Nganga (center left) and Safaricom CEO Bob Collymore (center right) mark the launch of the Safaricom Sustainability Report 2017 at the company's headquarters. Looking on is UN Resident Coordinator and UNDP Resident Representative, Siddharth Chatterjee (far left) and Ivy Waikwa, a student at the Mpesa Foundation Academy (far right).

Some of the other direct ways in which the operator adds value to Kenyan society are via its two charitable arms, the M-PESA and Safaricom Foundations: they almost doubled their contributions year-on-year to KES 6.6 billion ($64 million), with the greatest growth in contributions focused on education and health.

The M-PESA mobile finance service itself, though, is also a significant value creator. "The social value of M-PESA remains a significant creator of value for Kenyan society, increasing by 12% in the last financial year. The major driver for this growth has been the increase in customer, agent and merchant numbers," noted Safaricom CEO Bob Collymore in a prepared statement.

However, it's not all good news for the operator. As Kenyan newspaper The Star reported, Safaricom was fined KES270 million ($2.6 million) during the 2016/17 financial year for poor service quality delivery.

And Collymore has denied as "baseless" the accusation that senior Safaricom staff were involved in election fraud, reports Business Daily.

The staff, Connecting Africa

Innovation hub

Story

Africa can leverage GenAI for economic growth – Microsoft

A whitepaper on generative artificial intelligence (GenAI) and the future of work has found that the African continent, with its young population, can leverage AI to drive economic growth.

Registration opens for Africa Tech Festival 2024

Registration has opened for the 2024 edition of Africa Tech Festival, the continent's leading platform for technology innovators, specialists and thought leaders.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Cyber Revolution Summit
August 9, 2024
Gaborone, Botswana
Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

How e-mobility could transform Africa's transport sector

By Francis Hook

ICT analyst Francis Hook delves into Africa's e-mobility sector and unpacks the challenges faced locally and the benefits the move to electric vehicles could bring to urban transport systems.

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002