Message from the Chairman

“Safaricom has always seen success as a leader in the telecommunications industry that places its customers at the front and centre, and as a responsible corporate citizen committed to making significant contributions not only to the economy of Kenya, but to the wellbeing of its communities. These attributes are consonant with our purpose of transforming lives, and it remains our resolute determination to pursue our strategic goal, which is to scale technology solutions in order to be a purpose-led technology company by 2025.” This Annual Report showcases our solid results and highlights the forward-looking, innovative, and integrated organisation we have become. Despite facing significant challenges in the global and domestic economic landscape, both at home and abroad, we have managed to navigate these headwinds and deliver exceptional outcomes. The past year presented us with tough operating conditions, including increased regulatory scrutiny, changes in taxation, political uncertainty surrounding the elections, and a significant economic slowdown compounded by rising inflation, currency depreciation, drought, and famine. The revised Mobile Termination Rate (MTR) and increased excise duty on SIM cards and mobile phones added further pressure to our business. However, despite these obstacles, we are pleased to see the outstanding results we have achieved.

Commitment To Government and Regulators

We have remained committed to supporting the government’s economic agenda by creating jobs, forming meaningful partnerships, and fulfilling our duty to pay taxes. Furthermore, we are dedicated to increasing our engagement with regulators on policy development, legislation, taxation, customer registration, and data protection. As part of our strategic goals, we have focused on leveraging technology and driving customer innovation. We aim to transition into a technology company at the forefront of change, productivity, and financial inclusion in Kenya. We recognise technology’s immense potential in unlocking Kenya’s economic growth and addressing customer and societal concerns. Safaricom is committed to leading in realising this agenda, and the Board has provided the necessary guidance and oversight to ensure the successful execution of our goals. Despite our headwinds, including inflation, political uncertainty due to the General Elections, and regulatory changes, the Board remained focused on informed decision-making and delegation. We are pleased to witness management’s ability to deliver value to our shareholders under such circumstances.

Board Changes

Throughout the year, we experienced changes in the composition of our Board. I thank all the Board members for their warm welcome and trust in my leadership. I would also like to welcome Ory Okolloh and Karen Kandie, whose talent and expertise will add value to our collective skills. I would also like to thank Prof. Bitange Ndemo, Ms Linda Muriuki, Christopher Kirigua, Eng. Stanley Kamau and Sitholizwe Mdlalose as they leave us for their outstanding contribution to the Board during their service and wish them well in their further endeavours.We are proud of our Board composition, with its wide range of perspectives, experience, skills, inclusivity and gender balance. It demonstrates great commitment, diligence, and effectiveness in its responsibilities. Once again, throughout the year under review, the Board has displayed great commitment, diligence and effectiveness in carrying out its responsibilities and providing wise guidance to management, ensuring we continue to deliver value to our stakeholders at all times. The changes in the Board composition within the year notwithstanding, the Board continued to support management in its five-year strategy of transforming Safaricom into a technology company. We are encouraged by the strong execution of this strategy since its launch in September 2020.The changes in the Board composition have supported our commitment to the five-year strategy of transforming Safaricom into a technology company.

Dividends

In February 2023, the Board approved a payment of an interim dividend of KShs 0.58 per ordinary share, amounting to a total of KShs 23.24 billion for our shareholders. At the AGM to be held on 28 July 2023, a final dividend in respect of the year ended 31 March 2023 of KShs 0.62 per ordinary share amounting to a total of KShs 24.84 billion is to be proposed for approval. This brings the total dividend for the year to KShs 48.08 billion which represents KShs1.20 per share in respect of the year ended 31 March 2023.

Our Ethiopia Operations

Our operations in Ethiopia have progressed well since the launch of Safaricom Telecommunications Ethiopia (STE) last year. We remain optimistic about Ethiopia’s opportunities and are fully committed to making the necessary investments to achieve our goals in that market. (For more on our Ethiopia operations, see page 25.)

Corporate Citizenship

During the year, we have maintained our commitment to working with the government and regulators, acknowledging our role in contributing to the economy through job creation, meaningful partnerships, and paying duties and taxes. We have actively addressed our stakeholders’ and partners’ concerns and material issues. Furthermore, we are determined to enhance collaboration with regulators to improve the lives of Kenyans by focusing on policy development, legislation, taxation, customer registration, and data protection. Our contributions to various projects, such as the Hustler Fund, the Women Enterprise Fund, E-subsidies, and supporting drought management initiatives, exemplify our commitment to responsible corporate citizenship and societal impact.

Acknowledgements

I thank our CEO, Peter Ndegwa, and his entire management team for the responsive and skilled execution of our strategic goals – efforts that enabled us to create and deliver value during a difficult year. My thanks also go to my colleagues on the Board, whose skills and dedicated and diligent work have added exceptional value to the Company. Finally, I would like to acknowledge the contribution of all our employees, without whom commitment, loyalty, and hard work have enabled us to deliver on our strategy and produce our results.

Adil Khawaja

Mwenyekiti

Ujumbe Kutoka Kwa Mwenyekiti

“Safaricom imekuwa ikipata mafanikio kama kiongozi katika sekta ya mawasiliano ya simu anayewaweka wateja wake mbele katika kila jambo, na pia shirika raia mwema aliyejitolea kutoa mchango mkubwa sio tu kwa uchumi wa Kenya, bali pia kuboresha hali ya jamii. Sifa hizi zinaendana na lengo letu kuu la kubadilisha maisha, na ni azma yetu kuendelea kujizatiti kutimiza lengo letu la kimkakati ambalo ni kuongeza na kuboresha bidhaa na huduma za kiteknolojia iii kuwa kampuni ya kiteknolojia inayoongozwa na lengo kuu kufikia 2025.” Ripoti hii ya kila mwaka inaonyesha matokeo yetu mazuri na pia kudhihirisha tulivyoibuka kuwa shirika linaloona mbele, lenye ubunifu na uvumbuzi na lililofungamanishwa. Licha ya kukabiliwa na changamoto nyingi za kiuchumi kimataifa na ndani ya nchi, tumefanikiwa kukabiliana na misukosuko hiyo na kuandikisha matokeo mazuri ya kuridhisha. Mwaka uliopita ulikuwa na hali ngumu ya kuendesha shughuli, ikiwemo kuangaziwa zaidi na wasimamizi wa sekta, mabadiliko katika ushuru, wasiwasi wa kisiasa kutokana na uchaguzi. Uchumi pia ulidorora na hali ikafanywa kuwa mbaya zaidi na mfumko wa bei za bidhaa, kushuka thamani kwa shilingi ya Kenya, kiangazi na ukame. Kubadilishwa kwa ada ya kupiga simu kutoka kwa mtandao mmoja hadi mwingine (MTR) na kuongezwa kwa kodi ya bidhaa kwenye laini za simu na simu za mkononi ni mambo ambayo pia yaliongeza shinikizo kwa biashara yetu. Hata hivyo, licha ya vizingiti hivi, tuna furaha kuyaona matokeo tuliyofanikiwa tuyapata.

Kujitolea Kwa Serikali Na Wasimamizi

Tumesalia kujitolea kuisaidia serikali katika ajenda yake ya kiuchumi na kuunda nafasi za kazi, kuingia kwenye ushirikiano wa maana, na kutimiza wajibu wetu wa kulipa ushuru. Isitoshe, tumejitolea kuzidisha mazungumzo na mashauriano yetu na mamlaka zinazosimamia sekta yetu kuhusu kutungwa kwa sera, sheria, ushuru, usajili wa wateja, na uhifadhi wa data.Kama sehemu ya malengo yetu ya kimkakati, tumeangazia kutumia vyema teknolojia na uvumbuzi kuwaridhisha wateja. Lengo letu ni kubadilika na kuwa kampuni ya kiteknolojia iliyo kwenye mstari wa mbele katika kutekeleza mageuzi, kuongeza uzalishaji na kufikisha huduma za kifedha kwa wengi Kenya. Tunatambua uwezo mkubwa wa teknolojia katika kufungulia na kuchochea ukuaji wa kiuchumi Kenya na pia kuangazia mahitaji ya wateja na jamii. (Kwa maelezo Zaidi kuhusu mkakati wetu, tazama ukurasa 44.) Safaricom imejitolea kuongoza na kutimiza ajenda hii, na Bodi imetoa uongozi na uelekezi ufaao kuhakikisha malengo haya yanatimizwa.Licha ya changamoto zilizokuwepo, ikiwemo mfumko wa bei, wasiwasi wa kisiasa kutokana na Uchaguzi Mkuu, na mabadiliko ya kisheria, Bodi ilisalia makini na kufanya maamuzi ya busara na ugawaji wa majukumu. Tuna furaha kushuhudia uwezo wa wasimamizi kufanikisha kuongeza thamani kwa wenyehisa wetu katika mazingira kama hayo.

Mabadiliko Kwenye Bodi

Katika mwaka huo, tulishuhudia mabadiliko katika uanachama wa Bodi yetu. Nawashukuru wanachama wote wa Bodi kwa ukaribisho wao mwema na kwa kuwa na imani na uongozi wangu. Ningependa pia kuwakaribisha Ory Okolloh na Karen Kandie, ambao vipaji vyao na ujuzi wao vitaongeza thamani katika mkusanyiko wa ujuzi tulio nao. Ningependa pia kuwashukuru Prof Bitange Ndemo, Bi Linda Muriuki, Christopher Kirigua, Eng. Stanley Kamau na Sitholizwe Mdlalose wanapoondoka kwa mchango wao wa kipekee kwa Bodi walipokuwa wanachama na nawatakia kila la heri katika shughuli zao za baadaye.Tunajivunia muundo wa Bodi yetu, na upana wa mitazamo, uzoefu, ujuzi, kujumuishwa kwa watu wa asili mbalimbali na usawa na jinsia. Ni ishara ya kujitolea, kuwajibika na utekelezaji wa majukumu yake inavyotakiwa.Kwa mara nyingine, kote katika mwaka tunaouangazia, Bodi imedhihirisha kujitolea pakubwa, kuwajibika na kufaa katika kutekeleza majukumu yake ipasavyo na kutoa ushauri ufaao kwa wasimamizi, na kuhakikisha tunaendelea kutoa thamani kwa wadau wetu nyakati zote. Licha ya mabadiliko yaliyofanyika katika uanachama wa Bodi katika mwaka huo, Bodi iliendelea kusaidia wasimamizi katika utekelezaji wa mkakati wao wa miaka mitano wa kibadilisha Safaricom kuwa kampuni ya kiteknolojia. Tunatiwa moyo na hatua zilizopigwa katika utekelezaji wa mkakati huu tangu kuzinduliwa kwake Septemba 2020. Mabadiliko katika uanachama wa Bodi yamesaidia katika kujitolea kwetu kutekeleza mkakati huo wa miaka mitano wa kugeuza Safaricom kuwa kampuni ya kiteknolojia.

Mgawo Wa Faida

Februari 2023, iliidhinisha malipo ya mgawo wa faida wa muda wa KShs 0.58 kwa kila hisa ya kawaida, ambazo ni jumla ya KShs 23.24 bilioni kwa wenyehisa wetu. Katika Mkutano Mkuu wa Kila Mwaka (AGM) utakaofanyika 28 Julai 2023, mgawo wa mwisho wa faida wa mwaka uliomalizika 31 Machi 2023 wa KShs 0.62 kwa kila hisa ya kawaida, ambazo ni jumla ya KShs 24.84 bilioni, umependekezwa kwa ajili ya kuidhinishwa. Hii itafikisha jumla ya mgawo wa faida kwa mwaka huo hadi KShs 48.08 bilioni sawa na KShs 1.20 kwa kila hisa katika mwaka huo uliomalizika 31 Machi 2023.

Shughuli Zetu Ethiopia

Shughuli zetu nchini Ethiopia zimeendelea vyema tangu kuzinduliwa kwa Safaricom Telecommunications Ethiopia (STE) mwaka uliopita. Tuna matumaini kuhusu fursa zilizopo Ethiopia na tumejitolea kikamilifu kufanya uwekezaji unaohitajika kutimiza malengo yetu katika soko hilo. (Kwa maelezo zaidi kuhusu shughuli zetu Ethiopia, tazama ukurasa 25.)

Ushirikiano Na Uraia Wa Kuwajibika

Katika mwaka huo, tuliendelea kutimiza ahadi yetu ya kufanya kazi na serikali na mamlaka mbalimbali, kutambua wajibu wetu wa kuchangia uchumi kupitia kubuni nafasi za kazi, ushirikiano wa maana, Pamoja na kulipa kodi na ushuru. Tumeangazia maswali ya wadau na washirika wetu, pamoja na mahitaji mengine. Kadhalika, tumejitolea kuboresha ushirikiano wetu na mamlaka zinazosimamia sekta yetu ili kuimarisha maisha ya Wakenya kwa kuangazia kutungwa kwa sera, sheria, ushuru, usajili wa wateja, na uhifadhi wa data. Mchango wetu katika miradi mbalimbali, kama vile Hazina ya Hustler, hazina ya wanawake wajasiriamali yaani Women Enterprise Fund, ruzuku ya kidijitali, na kusaidia mikakati za kudhibiti ukame, ni ishara ya kujitolea kwetu kuwa raia mwema, shirika na kuwa na manufaa kwa jamii.

Shukrani

Namshukuru CEO, Peter Ndegwa, na kundi lake lote la wasimamizi kwa weledi wao na ujuzi katika utekelezaji wa malengo yetu ya kimkakati. Juhudi hizo zimetuwezesha kuunda na kuongeza thamani katika mwaka mgumu. Shukrani zangu pia ni kwa wanachama wenzangu katika Bodi, ambao ujuzi wao, kujitolea, na kufanya kazi kwa bidii kumeongeza thamani kwa Kampuni. Mwisho kabisa ningependa kutambua mchango wa wafanyakazi wetu wote, ambao kujitolea kwao, uaminifu, na bidii kazini kumetuwezesha kutekeleza mkakati wetu na kuandikisha matokeo mazuri.