For the semi-annual period ending September 30, 2023, Safaricom reported a robust increase in net profit, with figures from its operations in Kenya showing a notable rise of 10.9%, resulting in a profit of KES 41.6 billion. The group’s overall net income also saw an upliftment, marking a 2.1% growth to reach KES 34.2 billion. In the previous fiscal year, we observed a 10.6% downturn, but now we are experiencing a recovery, complemented by a 10% surge in group service revenue.
Safaricom’s strategy of reducing prices across its services since 2020 has caused this financial upturn. The telecom giant has cut data prices by up to 65%, outgoing call rates by 44%, and M-PESA tariffs by as much as 61%. These adjustments have empowered customers to utilize more services for less cost, thus contributing to the company’s double-digit profit and revenue increases.
Additionally, Safaricom has embarked on strategic initiatives, such as the introduction of the youth-oriented Safaricom Hook product and the expedited deployment of its 5G network. CEO Peter Ndegwa highlighted the importance of these actions, stating that the company’s commitment to support its customers, especially during challenging economic times, has spurred growth in profitability and revenue.
Safaricom’s Ethiopian venture has also reached key goals, marked by the swift uptake of the M-PESA platform, registering over 1.2 million users in under two months. With Ethiopia’s financial inclusion rate standing at 35%, Safaricom is poised to foster greater financial integration and endorse a cash-lite economy in the country. Ndegwa expressed optimism about Ethiopia’s potential, observing that mobile data usage rates that took nearly a decade to achieve in Kenya have been matched by Ethiopia within a much shorter timeframe. In September alone, the data usage per customer in Ethiopia exceeded that of Kenya, registering 4.3 gigabytes relative to Kenya’s 3.7.