Safaricom CEO Peter Ndegwa's total compensation for the 2023 financial year witnessed a decline, marking the first time his annual earnings have fallen since joining the company.

The report, detailed in Safaricom's annual report, revealed a total compensation of Sh252.3 million, down from Sh313.1 million earned in the previous year (2022).

This decrease can be attributed to a reduction in bonus earnings.

Ndegwa received Sh134.1 million in bonuses for 2023, a significant drop of Sh62.2 million compared to the Sh196.27 million he received in 2022.

However, Ndegwa's financial picture isn't entirely bleak.

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He has significantly increased his stake in Safaricom, now holding 6.21 million shares, a considerable hike from the 895,000 he owned at the end of the 2022 financial year.

This increased shareholding, valued at an estimated Sh107.4 million based on the current trading price of Sh17.30 per share, presents a potential future windfall.


Looking at the broader range of the stock price over the past year (Sh11.50 - Sh21.15 per share), Ndegwa's stake could be worth as much as Sh131.3 million at the highest price point or Sh71.4 million at the lowest.

This decline in total compensation comes despite a record-breaking year for Safaricom.

The company became the first in the East African region to surpass the billion-dollar mark in earnings before interest and tax (EBIT) for the financial year ending March 2024.

Previously, Ndegwa's earnings had seen a consistent upward trajectory. In 2022, his total compensation stood at Sh313.1 million, with a breakdown of Sh95.24 million in basic salary, Sh196.27 million in bonuses, and Sh21.60 million in non-cash benefits.

The year before (2021), his total earnings reached Sh288.9 million, a 43 per cent increase from 2020.

Ndegwa's first year as CEO in 2020 saw him earn a total of Sh202 million, with a monthly average of Sh16.79 million.

This comprised a basic salary of Sh102.3 million, a bonus of Sh90 million, and Sh9.2 million in non-cash benefits.