Safaricom, a major player in Kenya’s telecommunications industry, has reported a decline in net profit of Sh15 billion for the fiscal year ended March 31, 2023. Factors such as inflationary pressure and a dip in voice earnings contributed to the decrease. However, M-Pesa revenue increased by 8.8 percent to Sh117.2 billion, and mobile data rose by 11.4 percent to Sh54 billion, illustrating Safaricom’s adaptability in the face of changing market conditions.
CEO Peter Ndegwa acknowledged the challenging operating environment, characterized by a slowdown in business activity and a tough macroeconomic climate, as well as changes in mobile termination rates. Nevertheless, he emphasized Safaricom’s strong performance and positive momentum, reflecting the company’s resilience.
Ndegwa expressed confidence in Safaricom’s ability to provide technology solutions that align with its 5-year strategic plan, transforming the company into a purpose-led technology organization. Safaricom’s strategy prioritizes leveraging technology for positive change in Kenya and beyond, with a focus on empowering communities and businesses through digital innovation.
Despite the challenges posed by inflation and the general election year, Safaricom’s performance in M-Pesa and mobile data highlights the company’s ability to adapt to changing market conditions and leverage emerging trends. As Safaricom evolves, it remains committed to delivering value to its customers, shareholders, and the wider community through innovative products and services.
While Safaricom’s net profit may have decreased, its strong performance in M-Pesa and mobile data demonstrates its adaptability and resilience. Safaricom is poised to continue driving innovation and growth in Kenya’s telecommunications industry and beyond, thanks to its clear strategic vision and commitment to technology-driven positive change.