Safaricom has announced a significant shift in its shareholder dividend disbursement process, in a strategic move towards modernization and efficiency.

The telecommunications giant has opted to abandon traditional cheque payments in favour of electronic platforms, including bank transfers and M-Pesa transactions.

"In an effort to efficiently communicate with our shareholders, it is hereby brought to your notice that Safaricom Plc through its shares registrar, Image Registrars Ltd, requires all shareholders to update their contact information, dividend payment details and convert to electronic payment modes from cheques," Safaricom stated in a notice.

This transition signals Safaricom's commitment to streamline its operations and enhance shareholder experience.

The company emphasized that the switch to electronic payment methods would facilitate a more efficient distribution of dividends.

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The impending change comes in anticipation of the payment of the interim dividend amounting to Sh0.55 per share, totalling Sh23.64 billion.

The dividend, declared by the telco's board on February 21, is scheduled for disbursement on or about March 31, 2024, to shareholders registered as of the close of business on March 15, 2024.

To facilitate this transition, Safaricom has urged shareholders to update their details with Image Registrars, either through an online form or via email.

"For shareholders receiving cheques, you are encouraged to provide your bank account or registered M-Pesa details for payments going forward," the telco said.

The company has underscored the importance of shareholders providing their preferred electronic payment mode, whether bank accounts or registered M-Pesa details.

Safaricom cited the time-consuming nature of cheque payments as a primary motivator for the shift towards electronic transactions.

By embracing modern payment methods such as electronic fund transfers (EFT), real-time gross settlement (RTGS), and M-Pesa, the telco aims to expedite dividend payments to its shareholders.

However, while electronic payments offer convenience, shareholders may encounter associated costs.

With 534,719 shareholders as of March 2023, Safaricom has also extended this update directive to shareholders with Central Depository & Settlement Corporation (CDSC) accounts.

These shareholders are advised to liaise with their respective stockbrokers to ensure their details are up to date.

This comprehensive update initiative aims not only to facilitate the upcoming dividend disbursement but also to streamline future dividend payments.

Safaricom remains committed to leveraging digital solutions to enhance shareholder value and operational efficiency in line with evolving market trends.