Safaricom Senior Managers Receive Sh707.5 Million in Free Shares as Stock Compensation Scheme Grows

Senior Safaricom managers were awarded with 20.1 million free shares worth Sh707.5 million in the year that wrapped up in March 2026 as a thank you for all they've done to make the telecoms giant such a roaring success.

The Stock Compensation Plan That Keeps On Giving

The employees had picked up 15.4 million shares the year before, and its worth is staggering to think about - Safaricom have been splashing out billions of shillings every year to keep their stock compensation plan for top talent running.

At the helm and among the big winners were Safaricom's CEO Peter Ndegwa and chief finance officer Dilip Pal . According to the latest annual report, these two were major beneficiaries of the share awards, and thats according to the company's latest annual report.

How Executive Shareholding Figures Stack Up

Ndegwa's stake in the company had shot up to 12.09 million shares, worth an impressive Sh425.8 million - a jump from the 8.74 million shares he held the year before.

Pal's shares had also increased - from 2.22 million to 2.35 million shares - worth Sh82.9 million at current market prices.

How the Programme Actually Works

Safaricom buys its own shares on the open market and gives them out to specific employees, who then get to own them after 3 years. From then on, they can sell them, keep them or stick them in their personal accounts.

The company had this to say about its employee share award scheme: "Last year, the Trust bought 6.8 million shares for Sh143.2 million (2025 saw them buy 27.6 million shares for Sh445.8 million) and at the same time 20.1 million shares, worth Sh350 million, had finally gained value and were passed on to the eligible employees."

The programme had used up all the available shares they had left - 6.8 million bought in the review year and a balance of 13.3 million carried over from the previous year.

The Big Jump in Share Price - And What It Means

Safaricom's recent upward climb in share price has basically lifted the value of the shares awarded to astronomical heights - making fortunes for stock recipients out of nowhere. The share price has rocketed from lows of Sh12.2 in october 2023 all the way up to Sh35.2 recently, which is hugely driven by growing profits and a higher dividend payouts.

Safaricom's net profit including its Ethiopian operations was up 36.9 percent to Sh95.6 billion for the year ended March 2026. And the dividend payout leaped 66.6 percent to Sh2 per share.

Investor Magnetism

Things like losses in Ethiopia shrinking and Vodacom Group Limited having a big stake - 55 % of Safaricom - have only made the stock even more attractive to investors.

How It Differes from Other Companies

Unlike other companies with ESOPs - which issue new shares to staff who can get them for free or at a discounted price - Safaricom doesn't dilute its investors because the shares are bought from existing stock rather than being issued new shares.

Comparing Safaricom to Other NSE Firms

Other NSE firms do operate ESOPs that actually do dilute investors by issui'ng new shares that are then given out to qualifying staff for free or at a discount. HFCB Group allocated 94.27 million shares under a new ESOP scheme this year, which works out to a 4.77 % stake. Equity Group's shareholders voted in 2024 to issue 198.6 million shares at 50 cents per share allowing employee purchases.

Strategic Talent Retention

ESOPs are typically designed to attract and retain employees while aligning worker interests with shareholders through stock ownership exposure to company performance. Most shares tend to benefit top executives considered critical talent in driving strategy and organizational culture, particularly in competitive sectors like finance.