The Untold Impacts Of Safaricom To The Kenyan Economy

Bob Collymore, CEO of Safaricom

 

Safaricom generated a total of Kshs 315 Billion in revenues to Kenya’s GDP during FY2014/15, which accounted for a total of about 6% of GDP in total, says the True Value report released by Global Consultancy firm KPMG

This is as a result of utilized data from a number of different sources including; industry values in terms of revenue from BMI, income statements from Safaricom for the 2014/15 financial year, National Accounts and labour force for Kenya from the Economic Intelligence Unit (EIU).

The exclusive report finds that Safaricom generated societal value for Kenya at least nine times greater than their financial profit in the financial year 2015.

Covering Safaricom True Value during the 2014/5 financial year, the report says that Safaricom operations sustained about 682,000 jobs in Kenya during the year, representing about 4% of the total economically active labour force in Kenya.

Safaricom continues to be a major contributor to the revenues of the Government and remitted Kshs 54.8 billion in FY 2014/15, with corporate taxes and excise duties accounting for 70% of the total revenues submitted to the republic.

M-PESA created an estimated value of Kshs 133.8 billion in the 2014/15 financial year which was four times the total amount of transaction fees earned by Safaricom in the same period.

“This tells us that there is a bigger story that has driven the Safaricom narrative over the last 15 years. We now have a picture of our True Value beyond our financial results. This value is directly attributable to our deep connection to this market, and our continued desire to create solutions for the mobile phones that can transform the Lives of Kenyans,” said Bob Collymore, CEO, Safaricom.

This assessment values Safaricom ‘True Earnings’ – a monetization of Safaricom’s financial, economic, social and environmental impacts for the most recent financial year.

The True Value assessment reveals that Safaricom creates social value several multiples greater than its’ financial value.

For example, stakeholders experience four times greater social value than the transaction fees paid to Safaricom; as well as 86% of customer’s experience created by M-PESA, due to increases in personal savings.

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About the Author

Muhatia
Muhatia is the Managing Editor of Biz News Media Reach him via editor@biznews.co.ke