Safaricom in Focus: Why it is The Stock to Watch in 2019

Safaricom has grown from a voice and data service provider to the biggest communication company in East and Central Africa providing financial services and enterprise solutions to the subscribers.
At the heart of the company’s legacy has been the drive to address everyday problems and offer solutions through the over 100 products under its portfolio.
M-PESA, the pioneer mobile money transfer that has been recognized globally and one of the most successful of its kind. The product has won awards and accolades globally.
In the year that ended in March 2018, Safaricom grew its value chain by 57 billion shillings on its contribution share to Kenya’s economy.
In 2018, Safaricom sustained an estimated 896,372 jobs at a time when many companies in Kenya at the time other companies were retrenching hundreds of employees due to a hostile business environment.
171,369 jobs were directly associated with Safaricom while the rest of the jobs were as a 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 where Safaricom supported 682,000 jobs contributing 486 billion shillings to the economy.
As at March 2018, Safaricom had a total of 5,556 employees who earned 10.23 billion shillings in salaries, pension contributions, bonuses, and employee performance share awards.
Why Safaricom?
- Safaricom’s Impact on the Economy
According to Safaricom’s 7th Sustainable Business Report 2018, its contribution to the economy stood at 543 Billion Shillings, an equivalent to 6.5 percent of Kenya’s GDP.
Safaricom is the largest listed firm on the Nairobi Securities Exchange (NSE) and has a market capitalization of 941.5 billion shillings. The company is Kenya’s most profitable company.
- Planning 5G Network
As of December 2018, Safaricom’s launch of 5G services had already begun following the telco’s trial of a new and innovative network coverage technology dubbed TubeStar Base Station that is aimed at enhancing coverage in urban areas.
Tubestar replaces the standard tower base station with a tubular structure that occupies up to 75 percent less the land typically required.
The TubeStar eliminates the need for a compound and perimeter wall around the base station by incorporating all equipment within the tower structure.
- M-PESA core networking in every mobile money deal.
M-PESA plays an important financially-enabling role in the lives of more than 20 million Kenyans.
Its impact on deepening financial inclusion is through the M-Shwari micro-finance savings and loans service, which helps underserved Kenyans access banking facilities and credit, and the Lipa Na M-PESA merchant service, which supports and enables entrepreneurial and SME activity across the economy.
Today, more than 96 percent of households have at least one active M-PESA account, which means Kenyans love and trust it for mobile transactions.
With the service, most Kenyans don’t need to visit the bank to withdraw or send money.
- Getting into Cyber Security
Safaricom is now offering security services to businesses and individuals to help them reduce the risk of loss of money and sensitive data.
The services include Managed Security Solutions, Security Assurance, and Advisory services as well as Managed Security Operations Center solutions.
With the new service, companies, enterprises, and individuals can secure their emails, websites, manage vulnerabilities, test and audit I.T systems and access real-time monitoring among other services
- The overdraft facility Fuliza
M-Pesa’s Fuliza overdraft facility allows M-Pesa customers to complete their transactions when they have insufficient funds in their M-Pesa account.
The overdraft facility has already been hailed by the market and economic analysts as something that will cement MPESA’s lead in financial innovation that will further enhance and reaffirm Kenya’s position as a leader in financial development, innovation, and inclusion.
- It’s CSR wing aspect
M-Pesa Foundation Academy
This is in line with the Sustainable Development Goal of education for all. Safaricom grants full scholarships to learners from disadvantaged backgrounds in order to give them an opportunity to study.
Chapa Dimba na Safaricom
The Chapa Dimba na Safaricom Tournament aims to recruit young talented footballers, aged between 16 and 20 years old, to play in a tournament, showcase their talent, and enjoy an opportunity to earn from their passion by winning the overall prize money worth 1 million shillings and an international training camp opportunity
Ghetto Classics
It is a project undertaken by Safaricom to fund young children in slums through music education. The children then get to play and perform at the Safaricom Jazz festivals alongside international and local musicians.
View more CSR projects here
ALSO, READ
As 2019 Kicks Off, Here Are The 7 Stocks To Watch
Fuliza: Reason To Buy More Shares in Safaricom and Take A Long Term Position On The NSE; Credit Access Made Easy
Buying and Selling Shares Online Via Co-operative Bank’s Kingdom Securities
About Soko Directory Team
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
- January 2025 (118)
- February 2025 (69)
- January 2024 (238)
- February 2024 (227)
- March 2024 (190)
- April 2024 (133)
- May 2024 (157)
- June 2024 (145)
- July 2024 (136)
- August 2024 (154)
- September 2024 (212)
- October 2024 (255)
- November 2024 (196)
- December 2024 (143)
- January 2023 (182)
- February 2023 (203)
- March 2023 (322)
- April 2023 (298)
- May 2023 (268)
- June 2023 (214)
- July 2023 (212)
- August 2023 (257)
- September 2023 (237)
- October 2023 (264)
- November 2023 (286)
- December 2023 (177)
- January 2022 (293)
- February 2022 (329)
- March 2022 (358)
- April 2022 (292)
- May 2022 (271)
- June 2022 (232)
- July 2022 (278)
- August 2022 (253)
- September 2022 (246)
- October 2022 (196)
- November 2022 (232)
- December 2022 (167)
- January 2021 (182)
- February 2021 (227)
- March 2021 (325)
- April 2021 (259)
- May 2021 (285)
- June 2021 (272)
- July 2021 (277)
- August 2021 (232)
- September 2021 (271)
- October 2021 (304)
- November 2021 (364)
- December 2021 (249)
- January 2020 (272)
- February 2020 (310)
- March 2020 (390)
- April 2020 (321)
- May 2020 (335)
- June 2020 (327)
- July 2020 (333)
- August 2020 (276)
- September 2020 (214)
- October 2020 (233)
- November 2020 (242)
- December 2020 (187)
- January 2019 (251)
- February 2019 (215)
- March 2019 (283)
- April 2019 (254)
- May 2019 (269)
- June 2019 (249)
- July 2019 (335)
- August 2019 (293)
- September 2019 (306)
- October 2019 (313)
- November 2019 (362)
- December 2019 (318)
- January 2018 (291)
- February 2018 (213)
- March 2018 (275)
- April 2018 (223)
- May 2018 (235)
- June 2018 (176)
- July 2018 (256)
- August 2018 (247)
- September 2018 (255)
- October 2018 (282)
- November 2018 (282)
- December 2018 (184)
- January 2017 (183)
- February 2017 (194)
- March 2017 (207)
- April 2017 (104)
- May 2017 (169)
- June 2017 (205)
- July 2017 (189)
- August 2017 (195)
- September 2017 (186)
- October 2017 (235)
- November 2017 (253)
- December 2017 (266)
- January 2016 (164)
- February 2016 (165)
- March 2016 (189)
- April 2016 (143)
- May 2016 (245)
- June 2016 (182)
- July 2016 (271)
- August 2016 (247)
- September 2016 (233)
- October 2016 (191)
- November 2016 (243)
- December 2016 (153)
- January 2015 (1)
- February 2015 (4)
- March 2015 (164)
- April 2015 (107)
- May 2015 (116)
- June 2015 (119)
- July 2015 (145)
- August 2015 (157)
- September 2015 (186)
- October 2015 (169)
- November 2015 (173)
- December 2015 (205)
- March 2014 (2)
- March 2013 (10)
- June 2013 (1)
- March 2012 (7)
- April 2012 (15)
- May 2012 (1)
- July 2012 (1)
- August 2012 (4)
- October 2012 (2)
- November 2012 (2)
- December 2012 (1)