Our Value-Creating Business Model

Our value-creating business model forms a fundamental part of our financial and intellectual capitals, while at the same time utilising all six of our capitals. It frames the way we create value for all our stakeholders, and is the foundation of our growth through sustained investment centred on customer experience.

Our Value-Creating Business Model

Our Approach to Stakeholder Management

We recognise that the concerns and material issues raised by our stakeholders are of critical importance in the pursuit of our purpose of transforming lives, and our strategic focus of accelerating new growth areas. Engaging with, and deriving insights from our interactions with them, and managing our relationships with them, is thus a key part of our human, intellectual and social and relationship capitals. Meaningful acknowledgement of, and action in response to, the feedback we receive from them, assists us in devising our strategy. It therefore helps shape our approach to sustainability in the long term, and ultimately, to creating and delivering value and thereby achieving success.

Material Relationships

Provide access to spectrum and operating licenses, the basis for creating value Impose regulatory measures with potential cost implications.

Means of Engagement

  • Participation in consultations and public forums
  • Submission and engagement on draft regulations and bills
  • Engagement when submitting regulatory returns
  • Partnering on key areas including education, health, and gender-based programmes
  • Publication of policies and research engagement papers

Material Interest

Ensuring this wide spectrum of interests is managed as a strategic resource, contributing to national broadband access and the digital economy, especially in under serviced and rural markets. Others include:

  • Promoting opportunities for job creation and socio-economic development
  • Protecting consumer interests on service quality, costs, and privacy
  • Regulatory compliance on issues such as mobile termination rates, price, returns, security, safety, health, and environmental sustainability
  • Contribution to the tax base

How We Engaged

  • Interacted closely with the government regarding new regulations via submission of outlooks and comments during public participation exercises
  • Increased focus on subscribers’ KYC validation in line with the nationwide SIM card validation exercise
  • Continued to implement safeguarding measures to ensure customers' data is protected in line with data-protection laws in Kenya
  • Secured required spectrum and approvals for the roll-out of 5G in over 21 counties
  • Activated over 34 sites in line with the Universal Service Fund (USF) Phase II project to allow marginalized areas to access smooth voice and data services
  • Collaborated with other industry players in the CA’s Child Online Safety Campaign to enhance the implementation of industry guidelines/policy for child online protection and safety in Kenya
  • Collaborated with The Central Bank and other payment service providers to launch the Kenya Universal QR code increasing interoperability and heralding easy, fast, convenient, and secure payments across using a standardized QR

Material Relationships

Investing in tools and products that are designed to give our customers variety and control through relevant products and services.

Means of Engagement

  • Call centres, retail outlets and online – MySafaricom app, www.safaricom.com, Zuri ChatBot, messaging and USSD channels
  • Net Promoter Score (NPS) feedback
  • Facebook and Twitter platforms
  • Safaricom PLC website www.safaricom.co.ke
  • Open days offering customers affordable deals on products

Material Interest

  • Relevant and better value offerings
  • Faster data networks and wider coverage with the 5G roll-out
  • Making it simpler and quicker to deal and connect with us by using Safaricom self-care services
  • Launch of converged solutions for business customers with the Kifarunet
  • Managing the challenge of data-usage transparency by using tools like My Data Manager and Subscription Manager
  • Privacy of information and content through Securenet protecting our loved ones through parental control and anti-malware protection
  • Feedback on service-related issues via CARE, in line with our Customer Obsession agenda

How We Engaged

  • Digitise and simplify customer journey
  • Grow number of customers interacting with our digital channels
  • Enhance data experience by fixing network experience issues
  • Hustler Fund launch designed to improve financial access to responsible finance for Kenyan personal, micro-, small- and medium-sized enterprises (MSMEs)
  • Reduction in Fuliza charges with up to 50% price reduction on the Daily Maintenance Fee
  • M-PESA Go account product for juniors that will drive digital financial inclusion, financial literacy, and ultimate financial health amongst the younger generation

Material Relationships

Provide sustainable financial capital required to grow, and feedback to inform our management and reporting practices.

Means of Engagement

  • Investor engagements including roadshows, conferences, and meetings
  • Annual and interim results announcement
  • Annual General Meetings (AGMs) with shareholders to update them on our business strategy
  • Investor relations section on the company website

Material Interest

Sound investment to ensure sustainable growth and risk management and to ensure that we take advantage of the opportunities that arise. Others include:

  • Responsible allocation of capital and sustainable investment
  • Sound corporate governance practices
  • Transparent executive remuneration
  • A stable dividend policy

How We Engaged

  • Maintained a focus on credit, liquidity, and capital management
  • Continued to grow our investor portfolio through increased investor engagement with various funds including impact funds
  • Won in various financial reporting categories (In Kenya – the FiRe Awards won in the integrated reporting section and in the Johannesburg Stock Exchange (JSE) integrated reporting awards 2022)
  • Held Safaricom Inaugural Investor Day in February 2023
  • Successfully paid both a final FY22 and Interim FY23 dividend payment in FY2023 as per the dividend policy

Material Relationships

Our employees’ engagement, determination and skills drive our ability to realise our purpose of "transforming lives".

Means of Engagement

  • Internal website
  • Newsletters, internal magazine, and electronic platform communication
  • Employee surveys
  • Employee hotline
  • Leadership coaching and mentorship forums
  • CEO mailbox

Material Interest

  • Clear career paths through individual development plans and performance reviews to assist in career development
  • Improved knowledge-sharing across the Company
  • Simplicity, agility, and engagement
  • Building the coaching and mentoring capability of leaders
  • Better understanding of reward structures
  • Competitive remuneration

How We Engaged

  • Continuous communication, education, and awareness forums for all staff, to support personal and financial development
  • Future of Work – Hybrid working implementation
  • Training and upskilling of all staff through Safaricom Business School (SBS) learning
  • Launch of Industry Digital Talent Programmes leveraging on partnerships
  • Launch of Alumni programme
  • Onboarded 80 early career talent/management trainees

Material Relationships

Impact on our ability to offer quality and cost-effective products and services and to provide cutting-edge technology.

Means of Engagement

  • Supplier engagement forums and ongoing site visits
  • Audits/verification checks for high-risk suppliers
  • Annual supplier self-assessment to check on compliance with supplier code of conduct
  • Annual supplier NPS to rate suppliers’ perception and understanding of our processes, in addition to obtaining feedback and addressing gaps
  • Quarterly supplier performance feedback sessions

Material Interest

  • Timely payment and fair agreement terms
  • Occupational Health and Safety Act compliance
  • Improving health and safety standards
  • Partnering on environmental solutions
  • Timely communication on outcomes of various activities such as the tender process
  • Increase in volume of business awarded
  • Improve knowledge-sharing on understanding of Safaricom’s card system and Health, Safety and Wellness (HSW) incidents and accidents
  • Remain accessible to partners for feedback
  • Feedback on performance

How We Engaged

  • Engagements with suppliers remain mainly virtual with few cases of face-to-face interaction
  • Virtual sessions enable easier and wider reach especially for foreign suppliers

Material Relationships

Transforming lives through sustainable development initiatives that strengthen the socio-economic context in which we operate.

Means of Engagement

  • Safaricom Foundation partnering with communities
  • M-PESA Foundation investing in projects with corporate social investment (CSI)
  • Public participation in projects and initiatives that give back to society, such as the Safaricom Marathon geared towards the Lewa Wildlife Conservancy

Material Interest

  • Access to digital service platforms, mobile voice, and data services
  • Access to basic services such as finance, health, and education
  • Investment in infrastructure
  • Responsible expansion of infrastructure

How We Engaged

  • Supported COVID-19 relief effort through the COVID-19 Adaptation Project to mobilise and train 121 groups while enhancing 2,152 enterprises with a total disbursement of KShs 21.5 million in Busia, Migori, Baringo, Nairobi and Muranga counties
  • The 2022–23 Ndoto Zetu phase IV identified and delivered 390 dreams from the 47 counties, improving 709,537 Kenyan lives directly, and 3,547,685 indirectly
  • Improving the lives of women and youth in Kajiado county by promoting the adoption of agriculture as a viable and dignified source of livelihood, with 1,300 potential farmers interacting with modern farming methods and various value chains at the demo farm
  • 1,027 trainees across TVETs in the country were equipped with sustainable skills for the construction and hospitality industries
  • In Baringo county, the Uzazi Salama programme realised growth of 152% skilled deliveries against target, while Ante Natal Clinic (ANC) attained 222% in one visit and 103% in four visits
  • The KShs 150 million Uzazi Salama programme (maternal, new-born and child health) that aims at decreasing maternal and new-born health morbidity and mortality rates, continued with implementation plans in Homabay County, leveraging technology to train community health volunteers
  • 414 students at the M-PESA Foundation Academy and 325 at Uongozi centre. Tertiary education placement for cohort 1 to 3 absorbed 94, 166 and 158 students respectively
  • Gertrude’s Foundation continued with the implementation of the Telemedicine-Daktari Smart Programme in Homabay, Samburu, Lamu and Baringo counties, where 1,473 children from hard-to-reach areas benefited
  • The Wezesha Elimu programme contributing to improved access to education for children with disabilities to achieve their full potential and lead a dignified life, saw 188 paediatric orthopaedic and other surgeries, distributed 158 mobility devices, and performed 152 orthopaedic rehabilitations
  • The Foundations improved the lives of 2,487,673 people while 1,399 employees participated in CSI initiatives

Material Relationships

As a key interface with our customers, partners are custodians of our brand and reputation and critical to ensuring our strategy of delivering the best customer experience, including through financial services partnerships, such as Visa M-PESA Global Pay, Fuliza, and content providers.

Means of Engagement

  • One-on-one and virtual business meetings
  • Training sessions on new products and services
  • Market visits

Material Interest

  • Making it simpler and quicker to deal with us
  • Partnerships
  • Involvement of top management

How We Engaged

  • Over 50 workshops done for sensitisation and capacity-building
  • Over 40 WIB CEOs in mentorship
  • MOU with four leading banks for supplier financing
  • CEO mentorship cohorts done and effective
  • Strategic partnerships with government to provide digital platforms to Kenyans, enhancing service provisions such in the Hustler Fund, MyCounty App, and Women Enterprise Fund
  • Accelerate the development and implementation of a new generation of financial services products under wealth management, insurance and payments
  • Continue with market visits to better understand customer needs and issues in order to enhance customer experience

Material Relationships

Critical role as the contact point for external stakeholders and keeping them informed of the fact concerning business developments, new products, services, and the impact of our business operations.

Means of Engagement

  • Media releases and product-related publicity
  • Roundtables
  • Product launches
  • Face-to-face and telephonic engagements
  • Interviews with the CEO and key executives

Material Interest

  • Updating on key activities and offerings by the business
  • Transparency
  • Communication of change and new products and services

How We Engaged

  • Building media engagements and partnerships through activities such as Iftar dinner with Muslim journalists; cocktails with over 150 journalists; an immersion session with sports journalists ahead of Safaricom Chapa Dimba Season 4 launch
  • Partnership with media to support the drought and famine response
  • Continuous information-sharing with local and international media where needed