Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
According to Safaricom's CEO Bob Collymore, the dividend payment represents 80 percent of its net income and is a 36 percent increase on 2014's dividend/FILE

Kenya

Safaricom to pay Sh25.64bn as dividends

According to Safaricom's CEO Bob Collymore, the dividend payment represents 80 percent of its net income and is a 36 percent increase on 2014's dividend/FILE

According to Safaricom’s CEO Bob Collymore, the dividend payment represents 80 percent of its net income and is a 36 percent increase on 2014’s dividend/FILE

NAIROBI, Kenya, Sep 3 – Safaricom’s share price now stands at Sh17.05, which is more than triple the IPO price of Sh5 it started with.

The company’s board of directors has therefore recommended a dividend payment of Sh25.64 billion, which will represent 80 percent of its net income and a 36 percent increase on 2014’s dividend.

“We believe that this is an affirmation of our superior capabilities to support our key stakeholders in their endeavor to improve the lives of our customers and the people of Kenya as a whole,” said Safaricom’s CEO Bob Collymore.

This is the largest dividend ever paid by a listed company in Kenya’s corporate history.

“Our commitment to continue transforming lives remains strong and with our strategy in place, we are confident that we shall continue creating value for our shareholders and customers,” he added.

Safaricom’s Chairman Nicholas Ng’ang’a took to the AGM to announce the company’s recent achievements. For instance, its total revenues increased by 13 percent, 27 percent increase on its non-voice services such as data and M-PESA.

“Voice services remain the largest earner in a competitive environment where we have seen players offer free voice services,” Ng’ang’a said.

This, he attributed to a loyal customer base who are attracted to its wide coverage, accessible airtime distribution and promotions among others.

This comes at the back of Safaricom being accused of exploiting its customers by being too expensive.

According to the CEO, the rates at which the company charges for its services are standard and even better when compared to a majority of other mobile operators on the continent.

Advertisement. Scroll to continue reading.

“We have seen companies use models such as offering free voice calls and reduced data charges and at the end of the day they make losses and exit the sector. That will not be our strategy,” Collymore said.

He also stated that the company would not adopt similar models as those taken up by its competitors in order to protect itself against losing customers as it.

“We have seen growth in the number of our customers as they now stand at 23.3 million marking an 8 percent growth. We shall therefore continue with our business model that sees our customers receive quality services,” Collymore said.

Going forward, Safaricom is set to bring back The Big Box which it took off the market due to software issues it had been facing.

The Big Box, which is a digital decoder that also offers Internet bundles, is set for a re-launch soon with revised prices on its data bundles.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...