Safaricom has gotten approval from its shareholders two establish two new subsidiaries, one that will invest in seed-stage and another on growth-stage start-ups.

The two subsidiaries were given the thumbs up during Safaricom’s 15th Annual General Meeting (AGM) and will see the firm support tech and entrepreneurs and enhance innovation.

The company limited by guarantee seeks to build on Spark Fund, its investment entity which is governed by a Board of Trustees, designed to fund seed-stage start-ups in Kenya.

The Spark Fund portfolio includes companies like Shupavu 291 by Eneza education, iProcure, Sendy, Ajua and Soko Fresh.

Similarly, the new private limited liability company will invest in mature, strategically aligned entities to accelerate Safaricom’s mission to become a tech firm by 2025 and will act as its main investment vehicle for all strategic investments.

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“We are committed to empowering the tech ecosystem in Kenya and beyond, and this strategic move will enable us to broaden our investments, embracing both seed-stage and growth-stage start-ups,” said Safaricom CEO Peter Ndegwa.

He added, “Incorporating these subsidiaries is pivotal to realising Safaricom's purpose to become a purpose-led technology company.”

According to Ndegwa, the new firms will help Safaricom unlock new business ventures and value chain opportunities in the consumer, financial services, enterprises and SME spaces.

“We will be looking to invest in and support early-stage companies especially in emerging technologies such as analytics, Machine Learning, Artificial Intelligence, and the Internet of Things,” he revealed.

He said the telecommunications company will invite applications in the coming weeks.


“By investing in tech entrepreneurs and initiatives that align with our strategic mission, we aim to continue to transform lives by connecting people, opportunities, and information while driving innovation, creating value, and leaving a lasting impact on society,” stated Safaricom Board Chairman Adil Khawaja.

During the AGM, Safaricom shareholders approved a final dividend of Sh0.62 per ordinary share with the total dividend payout totaling Sh24.84 billion.

In February 2023, the Board approved a payment of an interim dividend of Sh0.58 per ordinary share totaling Sbh23.24 billion for shareholders raising the total dividend for the year to Sh48.08 billion.

The dividend will be payable on or about August 31, 2023 to all shareholders on the Register of Members as at the close of business on July 28, 2023.