Sa­fari­com con­trib­utes Sh414bn to econ­omy

This is about six per cent of Kenya’s na­tional wealth, re­ferred to as the gross do­mes­tic prod­uct, es­ti­mated at Sh6.40tn in 2015

The Star (Kenya) - - News Business - RICHARD MUNGAI @Richiy­mungai

Sa­fari­com’s con­tri­bu­tion to the econ­omy rose by a third in the full-year ended in March 2016 com­pared to the pre­vi­ous year, data re­leased yes­ter­day sug­gests.

The com­pany is es­ti­mated to have added Sh414 bil­lion, 31.42 per cent more than the Sh315 bil­lion in the pre­vi­ous year.

This is con­tained in the com­pany’s sec­ond True Value Re­port done by au­dit firm KPMG.

This is about six per cent of the coun­try’s na­tional wealth, tech­ni­cally re­ferred to as the gross do­mes­tic prod­uct, which was es­ti­mated at $63.40 bil­lion (Sh6.40 tril­lion) in 2015.

The es­ti­mated value is 10.8 times more than the Sh38.1 bil­lion record net profit the gi­ant telco re­ported dur­ing the fi­nan­cial year.

The pub­licly traded com­pany, owned 40 per cent by the UK’s Voda­fone, kept about 182,833 in di­rect and in­di­rect em­ploy­ment, 63.24 per cent more than last year’s 112,000.

KPMG used its own true-value for­mula to an­a­lyse so­cial eco­nomic and en­vi­ron­men­tal im­pacts of Sa­fari­com on peo­ple and gov­ern­ment.

Chief ex­ec­u­tive Bob Col­ly­more said the num­ber of jobs cre­ated is higher.

“Sa­fari­com sus­tained over 182,883 di­rect and in­di­rect jobs dur­ing the year and, if the wider ef­fects on the econ­omy are in­cluded, this num­ber in­creases to over 845,846 jobs,” he said yes­ter­day dur­ing the launch of the re­port in Nairobi.

The re­port states M-Pesa con­trib­uted most to so­cial value in 2016.

It shows the so­cial value cre­ated by M-Pesa, Sa­fari­com’s glob­ally trans­for- ma­tive money trans­fer plat­form, was Sh184.5 bil­lion, ex­clud­ing trans­ac­tion fees.

This is 4.45 times the Sh32.63 bil­lion trans­ac­tion fees earned by Sa­fari­com in the same pe­riod.

This means Sh67.36 of value is be­ing cre­ated for the Kenyan so­ci­ety for ev­ery M-Pesa trans­ac­tion that takes place.

The re­port shows the cap­i­tal ex­pen­di­ture of the com­pany in the pe­riod cre­ated Sh15 bil­lion in di­rect and in­di­rect value, and Sh27 bil­lion with the wider ef­fects on the econ­omy.

Col­ly­more, how­ever, said this value was eroded by cor­rup­tion in the coun­try.

“This is not di­rectly re­lated to the op­er­a­tions of Sa­fari­com, but the as­sess­ment ac­knowl­edges that cor­rup­tion is likely to pre­vent some of the eco­nomic value that Sa­fari­com cre­ates from reach­ing the in­tended re­cip­i­ents,” he said.

/ENOS TECHE

Sa­fari­com chief ex­ec­u­tive Bob Col­ly­more with Eu­nice Akoth, a stan­dard seven pupil at Kib­era Schools for Girls, dur­ing the launch of the Sa­fari­com sus­tain­abil­ity re­port in Nairobi on Mon­day

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.