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
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.
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