Last year was a challenging one for businesses around the country. Despite reported positive economic growth, consumer wallets remained under pressure, forcing Kenyans tomake tougher spending decisions every day.
This lower discretionary spending, coupled with increased tax demands as the Government sought to raise more funds from the ICT sub-sector, contributed towards the plateauing in growth of a number of services including voice and messaging. Despite this, the service industry continued to register sturdy performance, supported by the growth of businesses such as ours in ICT, as well as wholesale and retail trade, transport, tourism and real estate
As mobile penetration has deepened to reach close to 51 million subscribers in a country of about 52 million, so has the need to find alternative means of sustaining growth. Traditional growth drivers (voice and messaging) continue plateauing, pointing to the urgency of reinventing our business to meet changing consumer needs. This will require more calculated investment and innovation, both of which can only succeed in a supportive regulatory environment. We have noted with concern, attempts to regulate the industry through proposed legislation and regulations that seek to forcefully reorganise the operating structure of companies such as ours, whose growth has been the result of well-executed business strategy.
Such actions would severely limit the ability of businesses to invest, innovate and transform lives, which is what Safaricom exists to do. It is our hope that this matter will be handled in a more consultative manner, including meaningful discussions between all concerned parties in order to come to a more considered outcome, that's beneficial to all stakeholders.
Kenya is a dynamic market, with enough room for multiple players to compete fairly in the pursuit of business growth and brand love.
It is therefore encouraging to see the competition landscape changing, owing to the ongoing merger between two market players. We believe this will result in greater innovation and efficiencies for the benefit of customers. Safaricom welcomes fair competition on a fair playing ground, where investment, strategy, innovation and brand promise are the true differentiators; as opposed to the use of regulatory support as a means to success.
Over the last 18 years, Safaricom has built a business founded on our innate desire to transform lives using mobile technology. We have been able to do this by focusing on our strategy, continuously anticipating the needs of our customers and innovating to meet them and staying true to our purpose.
However, none of this would have been possible without your unwavering belief in our vision. So on behalf of the Board of Directors, I would like to say, thank you. Your patience, loyalty and support inspire us to do more: to seek out new growth opportunities that will generate considerable shareholder wealth, and deliver shared value to a broader stakeholder base.
We began Q2 FY2020 on a sad note following the passing of our CEO, Mr. Bob Collymore, on 1st July, 2019 after a long battle with cancer. He was a remarkable man who had an extraordinary dream for the world and for Safaricom.
For nine years, Mr. Collymore led our business to achieve notable milestones, including significantly increasing shareholder value and instilling in us a sense of purpose that has become the hallmark of what we do at Safaricom. This purpose, to transform lives, is the reason we exist today. To honour his legacy, we will remain committed to completing the work he began. We will stay true to our purpose and to using mobile technology to make life better for Kenyans and as many people as we can reach across the world.
Although our business is up against a number of challenges, we are confident in our ability to manage these risks and ensure continued growth, guided by a very able Executive Committee now headed by Mr. Michael Joseph, who was appointed as the interim CEO by the Board of Directors.
Looking ahead, we will continue to reinvent our business, invest in new areas of growth and realign our priorities to position Safaricom as a business that is fit for the future.
Nicholas Nganga | Chairman
The last month has been a difficult one for the Safaricom family, including our partners, following the passing of Bob Collymore. He was a great man, not just because he was a dear friend of mine, but because of what he was able to achieve in the nine years he spent at the helm of Safaricom. While we are still trying to come to terms with this loss, I believe that focusing on preserving and honouring Bob’s legacy will help us to eventually heal.
To guide the business through this transition, I have been appointed by the Board of Directors as Interim CEO. In this role, I will be taking care of the business to ensure that we stay on course with our strategy while the Board identifies a suitable candidate to lead this great company.
Until then, my focus for the foreseeable future will be to rally the team and guide the various business divisions in the execution of our business strategy, which will mean continued focus on putting the customer first, delivering relevant products and services and enhancing our operational efficiency.
We see a number of viable opportunities that have the potential to lead our business to greater heights. As a member of the Board, I am aware that the business has already outlined a number of focus areas for the current financial year, including providing additional support to the business units that are emerging as key revenue drivers, such as Financial Services.
I am particularly keen to work closely with the team to deliver the regional expansion strategy, something I know Bob wanted to achieve this year. Data also remains a key priority for the business, which needs to find a way to create balance between growth of data consumption and revenue growth.
So far, we have been making significant investments in this area and have a vision to become the best 4G+ network for everything from gaming and entertainment to social networking and I look forward to collaborating with a cross-functional team to make this happen.
Growth in this area will support our evolution into a digital lifestyle enabler, which will position us favourably to grow new revenue streams from non-traditional products and services such as DigiFarm, Masoko and other innovations in the pipeline. We believe that these initiatives, together with the investments we’re making in our network, will enable us to maintain our industry position, defend our market share and increase our Net Promoter Score not just based on the variety and quality of the products and services we sell, but on what our customers feel and say about us, because our business exists to transform their lives.
We have a vision to become the best 4G+ network for everything from gaming and entertainment to social networking.
This purpose is in our DNA, it’s what makes Safaricom great and I look forward to working with all our stakeholders to bring it to life, while at the same time delivering enhanced value for our shareholders.
Michael Joseph | Chief Executive Officer (Interim)
"Death is innevitable and I have made the decision not to cling on the thought of it because it will eventually come. I just do not know when. I have chosen to focus on the things that are more important to me. Now I know it's kind of impossible for somebody to live for 200 years.
But something very important is that when you have cancer, the idea of death is near and so it doesn't surprise, unlike you who is healthy but death could be coming in the next minute or tomorrow morning."
Bob Collymore
© 2024 - Safaricom
Our Business 
Our Performance
Our Governance
Financials
Downloads
