The foundation of our growth is the sustained investment centred around customer experience
We have continued investing heavily and strategically in 4G and now have more than 5,300 sites. Our fibre rollout now covers more than 10,000km opening up opportunities for content, smart home and enterprise propositions in the medium term.
We strive to complement the quality of network experience with personalised products and pricing offers, resulting in customers getting much more for their spend.
Mobile services
In line with our focus on customers’ needs, we offer a range of voice, messaging and mobile data solutions. We invest in CVM and data analytics to inform our product and service development and ensure they remain relevant across varying customer profiles.
We remain committed to constantly enhance our 3G and 4G coverage, while providing the market with affordable 4G smartphones. We recently launched the trail-blazing 5G technology, Kenya’s first fifth-generation (5G) mobile internet service targeting both enterprises and individuals across nine towns over the next 12 months.
Financial services
M-PESA is a mobile phone-based money transfer, payments and micro-financing service, launched in 2007 by Vodafone Group and Safaricom. The service allows users to deposit money into an account stored on their cell phones, to send balances using PIN-secured SMS text messages to other users, including sellers of goods and services, and to redeem deposits for regular money. In partnership with Kenyan lenders, we offer a ‘Fuliza’ overdraft facility that enables M-PESA customers to complete transactions at the point of sale/purchase when they have insufficient funds, subject to an applicable pre-determined limit.
Fixed service
We connect both households and businesses through Fibre to the Home (FTTH) and Fibre to the Building (FTTB) services that enable fast, reliable and unlimited internet access. This service is open and available to all customers residing within areas that have Safaricom fibre infrastructure ready to connect users to the service.
Platforms
Safaricom is leveraging the power of mobile technology to deliver e-commerce platforms such as ‘Masoko’ and DigiFarm. Masoko is an e-commerce platform that offers a selection of products and provides a space for merchants to trade goods. DigiFarm connects farmers to knowledge, quality and affordable inputs, credit and insurance and market opportunities.
Support functions
Our core activities are underpinned by a strong body of support function offices including Regional Sales and Operations, Customer Experience, Product and Service Development, Sales and Distribution, Financial Services, Strategy and Innovation, Finance, IT, Risk and Corporate Affairs and Regulatory.
M-PESA now contributes 33.0% of service revenue while mobile data contributes 17.9%, thereby reducing the reliance on traditional voice and messaging revenues. Fixed data contributes 3.8% of service revenue. We have, over the years, successfully continued to expand the portfolio, which builds resilience and strength to our business model consistently offering relevant solutions to our customers.
Through the cost leadership pillar of our strategy, we were able to yield cost savings that helped alleviate the pressure on our EBITDA margin. We saw opex decline 3.2% YoY, driven by smart procurement, digitisation and operating model transformation. Thanks to sustained operational efficiencies, we continue to observe improved opex intensity, reducing by 1.2% ppt YoY to 17.0% in FY21.
