Peter Ndegwa says Safaricom resilient after Sh315 billion turnover milestone

Peter Ndegwa, the Chief Executive Officer of Safaricom, has affirmed that the announced results are robust, given the challenging economic environment.

Ndegwa during an interview with a local TV station stated that the telecommunications company has surpassed the milestone of Sh300 billion in turnover, reaching a total of Sh315 billion.

This signifies a 5 per cent increase compared to the turnover of Sh295 billion reported in the fiscal year ending in March 2022.

"We are exceedingly pleased with the results. It is a resilient achievement in a challenging environment," Ndegwa said.

"The business has demonstrated remarkable resilience by surpassing the milestone of Sh300 billion in turnover, resulting in a Sh15 billion increase equivalent to the magnitude of a medium-sized business."

Ndegwa noted Safaricom is the inaugural company in Kenya and the region to attain this milestone, so it is vital not to focus solely on profit in the headlines.

The telecommunications company has recorded a full-year profit of Sh52.48 billion, down from Sh67.49 billion reported during the corresponding period in March 2022.

He noted that the company encountered challenging economic conditions throughout the reviewed period.

Ndegwa also attributed the reduction in profit to the substantial costs incurred during the establishment of Safaricom Ethiopia.

"The impact of higher cost affected customers in terms of inflation, causing a direct impact on our profit. The declining profit is because of the start-up cost in Ethiopia," he clarified.

The CEO emphasized that the Hustler Fund has contributed two million new customers who had not previously engaged with M-Pesa.

Ndegwa recognized the diminishing value of the Fuliza M-Pesa service, but emphasized the substantial increase in its adoption due to its 50 per cent lower cost.