Safaricom’s value to Kenya jumps 8% to Sh983Bn

Telco giant Safaricom’s contribution to the Kenyan economy increased by 8.1 percent to Kes983 billion in the fiscal year 2024, the firm’s 13th Sustainable Business Report shows.

The report highlights the company’s sustained efforts to foster economic growth, social impact, and environmental sustainability across the country.

According to the report, Safaricom’s direct contribution to the economy was Kes722 billion, while the total number of jobs sustained—both direct and indirect—increased to 1,283,329.

These figures underscore Safaricom’s expanding footprint in both the telecommunications and financial services sectors, largely powered by cash transfer platform M-PESA.

M-PESA’s expanding social value

M-PESA, Safaricom’s flagship mobile money platform, has continued to play a transformative role in the Kenyan economy. In FY24, M-PESA’s social value increased by 7.2 percent to Kes348 billion.

The platform’s impact extends beyond financial services, as it continues to empower millions of Kenyans, including customers, a vast network of agents, and dealers, driving economic empowerment and social mobility.

“Safaricom’s operations have become a lifeline for many Kenyans, and M-PESA continues to transform lives by offering solutions that impact a large part of our population,” stated Peter Ndegwa, CEO, Safaricom at the launch of the report.

Sustainability in operations

Safaricom’s sustainability agenda has remained a core focus as it strives to integrate Environmental, Social, and Governance (ESG) principles into its business model.

In FY24, the company planted 1.5 million trees, restoring 1,500 hectares of degraded public forests across Kenya.

Additionally, Safaricom cut its carbon footprint by 43 percent, attributable to the telco’s increasing adoption of sea shipments. In the same period, the company collected 2,048 tonnes of electronic waste, achieving a 100 percent recycling and refurbishment rate.

The report notes that Safaricom’s environmental impact erosion for FY24 was valued at Kes875 million, up 16 percent from the previous year, reflecting the environmental costs of its growing operations.

Community impact and inclusivity

Safaricom’s social initiatives, implemented through the Safaricom and M-PESA Foundations, have positively impacted over eight million Kenyans, the report notes.

The company  said it continues to prioritize diversity and inclusion, with women holding 42.4 percent of senior leadership positions and employees with disabilities now comprising 3.2 percent of the workforce.

At the same time, the report shows Safaricom engaged a total of 2,914 community forest association members, improving the livelihoods of 14,570 individuals through various community-based environmental conservation projects.

Ethiopia entry and gender-focused initiatives

Safaricom’s operations in Ethiopia have also seen significant progress, with the telco registering 4.5 million customers and connecting 38 percent of the population.

The company reported that it has also made strides in gender equality in the new market, achieving 23 percent female representation in senior leadership roles across Ethiopia.

Safaricom’s Ethiopian sites are increasingly powered by renewable energy, with 84 solar-powered and 1,052 grid-connected sites, the telco noted.

In addition, the firm planted 4,500 trees in Ethiopia under the Green Legacy initiative, and partnered with social enterprise Teki Paper Bags to provide employment to women with disabilities.

Towards a purpose-led technology company

Safaricom’s leadership reaffirmed its commitment to transitioning into Africa’s leading purpose-led technology company by 2030. As part of this shift, the company is embracing technology to meet the evolving needs of its customers while staying rooted in its sustainability goals.

“Our journey toward being a purpose-led TechCo is guided by the desire to create lasting value for all stakeholders. We will continue to drive positive change and address critical challenges, such as climate action and digital inclusion,” said Adil Khawaja, Chairman of Safaricom.

Key milestones in FY24

• 22 million Kenyans accessed affordable financing via the Hustler Fund and Women Enterprise Fund.
• 5G infrastructure was expanded to 43 out of 47 counties.
• Over 1,400 Safaricom sites are now powered by solar and hybrid clean energy solutions.
• Safaricom secured a Sh15 billion Sustainability Linked Loan (SLL) from a consortium of banks to support its efforts in reducing carbon emissions and promoting gender diversity.

As the company moves forward, its focus on innovation, sustainability, and inclusivity will likely continue to play a crucial role in shaping Kenya’s digital future.