NAIROBI: Safaricom’s board of directors has recommended a dividend payment of Sh25.64 billion to its shareholders. This will represent a payout of Sh17.05 per share to every shareholder. 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.
“We believe that this is an affirmation of our superior capabilities to support our key stakeholders in their endeavour to improve the lives of our customers and the people of Kenya as a whole,” Collymore said. This is the largest dividend ever paid by a listed company in Kenya’s corporate history.
Speaking during the telco’s seventh Annual General Meeting, Collymore also stated that the share price was triple the IPO price that the company had tagged at Sh5. “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 Nga’ng’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,” Nga’ng’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.
