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Safaricom

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Safaricom
NameSafaricom PLC
Foundation27 July 1997
LocationNairobi, Kenya
Key peoplePeter Ndegwa (CEO), Michael Joseph (Chairman)
IndustryTelecommunications
ProductsMobile network, M-Pesa, Internet, Data center
RevenueKES 295.7 billion (2023)
Operating incomeKES 84.9 billion (2023)
Net incomeKES 52.5 billion (2023)
AssetsKES 544.8 billion (2023)
EquityKES 240.8 billion (2023)
Num employees~6,500 (2023)
OwnerVodafone (40%), Government of Kenya (35%), NSE Public (25%)
Homepagehttps://www.safaricom.co.ke

Safaricom is a leading mobile network operator in East Africa, headquartered in Nairobi. Founded in 1997 as a joint venture between the Government of Kenya and Telkom Kenya, it is now a publicly traded company on the Nairobi Securities Exchange with significant shareholding by the global Vodafone Group. The company is renowned for pioneering the revolutionary mobile money service M-Pesa, which has transformed financial inclusion across Africa and beyond.

History

The company was incorporated on 27 July 1997, initially operating as a department within the state-owned Telkom Kenya before becoming a distinct entity. In 2000, a strategic partnership was formed with the United Kingdom-based Vodafone Group, which acquired a significant stake and provided technical expertise. A pivotal moment in its history was the launch of M-Pesa in March 2007, developed in collaboration with Vodafone and initially funded by a grant from the Department for International Development. Under the leadership of its first CEO, Michael Joseph, the company rapidly expanded its subscriber base and network coverage, listing on the Nairobi Securities Exchange in 2008. Subsequent leadership under Bob Collymore and later Peter Ndegwa has seen the company expand into Ethiopia through the Safaricom Telecommunications Ethiopia consortium, marking its first major international foray.

Services and products

Its core offerings include a comprehensive suite of voice, SMS, and mobile broadband services under brands like *Bonga* and *Sambaza*. The flagship M-Pesa platform provides mobile banking, money transfer, bill payment, and microfinance services, processing billions of transactions annually. Other key products include the *Fuliza* overdraft service, the *KCB M-Pesa* loan partnership with Kenya Commercial Bank, and the *Lipa Na M-Pesa* merchant payment system. The company also offers fiber-optic internet under *Safaricom Home Fibre*, cloud computing services, IoT solutions, and operates data centers through its *Safaricom Alpha* initiative.

Corporate affairs

The company's major shareholders are Vodafone Group (40%), the Government of Kenya (35%), and the public (25%) via the Nairobi Securities Exchange. Its governance is led by a board of directors chaired by Michael Joseph, with Peter Ndegwa serving as the Chief Executive Officer. Its headquarters are located at Safaricom House in the Ruaraka area of Nairobi. The company has a significant corporate social responsibility footprint, primarily through the Safaricom Foundation, which focuses on community projects in healthcare, education, and economic empowerment. It is a founding member of the GSMA’s Mobile for Development program.

Financial performance

For the financial year ending March 2023, it reported a service revenue of KES 295.7 billion, with M-Pesa contributing over a third of this total. Its operating income was KES 84.9 billion, with a net income of KES 52.5 billion. The company declared a final dividend of KSh 0.92 per share. It consistently ranks as the most profitable company listed on the Nairobi Securities Exchange and is a major contributor to government tax revenue. Key financial metrics are audited by PricewaterhouseCoopers and reported under the International Financial Reporting Standards.

Social impact and M-Pesa

The introduction of M-Pesa is widely credited with dramatically advancing financial inclusion in Kenya, providing access to formal financial services for millions of unbanked citizens. The platform has been studied by institutions like the Massachusetts Institute of Technology and the World Bank for its role in poverty reduction, empowering women, and supporting SMEs. Services like *M-Tiba*, in partnership with CarePay and the Ministry of Health, facilitate healthcare financing. During crises like the COVID-19 pandemic, M-Pesa was instrumental in distributing social protection funds from the National Treasury of Kenya.

Network and technology

It operates a extensive network comprising over 6,000 2G, 3G, 4G, and 5G sites across Kenya, with a significant portion of its infrastructure managed by its tower company, *East African Tower Company*. The company has invested heavily in a national fiber-optic backbone and submarine cable connectivity through systems like the EASSy and TEAMS. It is a pioneer in mobile money technology security and platform development. Recent technological initiatives include partnerships with Microsoft for Azure cloud services and the deployment of Narrowband IoT networks for smart solutions across agriculture and utility management.

Category:Companies listed on the Nairobi Securities Exchange Category:Mobile network operators of Kenya Category:Vodafone