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Safaricom Grows its Contribution to Kenya’s Economy to Sh543 billion

BY Soko Directory Team · October 30, 2018 09:10 am

Safaricom has grown its contribution share to Kenya’s economy, in the year ended March 2018, after growing its value chain by 57 billion shillings to a record 543 billion shillings according to the company’s most recent annual sustainability report.

The report reveals that Safaricom has sustained an estimated 896,372 jobs at a time that many companies in the country have hit the business headlines for retrenching hundreds of employees attributed to a hostile business environment.

171,369 jobs are directly associated with Safaricom according to the report while the rest of the jobs are as result of indirect activities such as suppliers.

Safaricom’s contribution to the economy currently can hence be equated to 6.5 percent of GDP, according to the report, an improvement from last year when Safaricom supported 682,000 jobs contributing 486 billion shillings to the economy.

Safaricom, which has celebrated its 18th birthday a fortnight ago, had 5,556 employees as at March 2018, who earned 10.23 billion shillings in salaries, pension contributions, bonuses, and employee performance share awards.

The firm is the largest listed on the Nairobi Securities Exchange (NSE) with a market capitalization of 941.5 billion shillings hence Kenya’s most profitable.

“When monetized, the net value of the most material social, environmental and economic impacts of the company, both positive and negative, gives an indication of the total value that Safaricom creates for the people of Kenya,” Safaricom says in the report prepared by consultancy firm KPMG.

Safaricom prides for 55.3 billion shillings in profits for the year to March 2018. It paid 40 billion shillings to the exchequer for the financial year ended March 2018, 24.6 billion shillings in tax and 15.4 billion shillings in dividends for the Treasury’s 25 percent stake. The firm also invested 36.4 billion shillings into capital expenditure, especially meant to expand its fibre network for high-speed data to homes and businesses.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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