Safaricom Shareholders' Dividend Payout Drops To KSh 48 Billion As Profit Declines

• Safaricom PLC held its 15th Annual General Meeting (AGM), where shareholders approved the final dividend payout
• The telecommunications firm announced a final payment of KSh 24.84 billion following KSh 23.24 billion paid in February 2023, adding up the total payout to KSh 48.08 billion
• Safaricom Chief Executive Officer (CEO) Peter Ndegwa attributed the pay to the telco's commitment to creating value for shareholders and other stakeholders, including customers

Safaricom PLC shareholders will get their final dividend payout on August 31, 2023.

This followed the stakeholders' approval of the KSh 0.62 payout per ordinary share, amounting to KSh 24.84 billion, during the 15th Annual General Meeting (AGM).

The first dividend payout initiated in February 2023 saw shareholders pocket KSh 0.58 per share, amounting to KSh 23.24 billion.

Therefore, the total dividend payout stood at KSh 48.08 billion, representing KSh 1.20 per share for the year ending March 2023.

Safaricom's poor performance

Safaricom Chief Executive Officer (CEO) Peter Ndegwa said despite the tough economic environment, the company is committed to customer value creation.

“Our performance in the year demonstrated the strong commitment to delivering value for our stakeholders, including employees, customers, shareholders, and the community,” said Ndegwa during the AGM held on Friday, July 28.

Ndegwa said despite the tough economic headwinds experienced in the year, including increased regulatory scrutiny, changes in taxation policies, and a significant economic slowdown compounded by rising inflation, the firm exhibited resilience during the year to sustain an overall solid performance.

The dividend payout dropped from KSh 55.68 billion or KSh 1.39 per share paid during a similar period in 2022.

Safaricom's turnover

In May 2023, Ndegwa attributed the reduction in the company profit to the global dynamics affecting the economy and the startup costs incurred to set up services in Ethiopia.

The CEO revealed that the telecommunication firm became the first company to cross the region's KSh 300 billion turnover mark.

"We are very pleased with the results... it is a very solid result in a tough environment. The business is very resilient and crossed the KSh 300 billion turnover mark...which is a KSh 15 billion increase... the size of a medium-sized business.

"It is the first company in Kenya and in the region to cross that number, so do not just focus on profit in the headlines," said Ndegwa, who spoke on Citizen TV on Thursday, May 18.

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Ndegwa said the company remains committed for customer and shareholder value creation.

Safaricom Shareholders' Dividend Payout Drops to KSh 48 Billion as Profit Declines - Tuko.co.ke

Safaricom Shareholders' Dividend Payout Drops to KSh 48 Billion as Profit Declines - Tuko.co.ke