The street protests witnessed across several parts of the country in the past two months have contributed to a 17 per cent drop in the share price of Safaricom.
This has seen East Africa’s most profitable company lose more than Sh118 billion in paper value over the past two months.
Safaricom management Thursday told shareholders at the company’s annual general meeting (AGM) in Nairobi that the street protests were partly to blame for the bearish run the firm’s counter has had at the Nairobi bourse.
“Safaricom share price declined due to foreign investor sell-off as interest rates rose in developed countries,” stated the management during the AGM Thursday.
“Other factors contributing to the decline are the current protests in the country.”
The firm’s shareholders Thursday approved a total dividend payout of Sh1.2 per share for the year ended March 2024, representing a total dividend payout of Sh48.08 billion.
The final dividend of Sh0.65 per share amounting to Sh26.04 billion was for the financial year that ended March 31, 2024.
This followed an interim dividend of Sh0.55 per share, totalling Sh22.04 billion, that was paid in March 2024 - bringing the total payout for the year to Sh1.20 per share or Sh48.08 billion.
“In the financial year under review, the business displayed significant resilience in producing outstanding growth in both our top and bottom lines,” said Safaricom chief executive Peter Ndegwa. “This enabled us to achieve a major milestone, attaining, in our Kenyan business alone, earnings of more than $1 billion (Sh130 billion) before tax and interest.”
Safaricom Board Chairman Adil Khawaja said the company remained resilient, posting strong results despite startup losses attributed to the establishment of its subsidiary 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,” said Mr Khawaja.
The telco also announced the exit of board members Ory Okolloh and Francesco Bianco. Okolloh, who was appointed in March last year and was eligible for reelection in today’s AGM has left with immediate effect while Francesco Bianco’s three-year stint on the board will come to an end in August.
“The year was marked by a challenging economic environment in both Kenya and Ethiopia,” said the firm in a statement. “High interest rates, inflation, and currency fluctuations impacted disposable income and business operations.”
Safaricom’s after-tax profits grew by 13.7 per cent - from Sh73.1billion reported in the 2022/23 financial year to Sh84.7 billion recorded in the year ended March 31, 2024, on the back of increased M-Pesa and mobile data revenues.
