The Commercial Value We Deliver

Our Financial Capital

The year under review proved once again to be a strong one for our financial capital, despite a slow first half of the year, and the impact from other challenging macro- economic factors, including political uncertainty around the elections, inflation, the review of the MTR, the introduction of additional taxes on SIM cards and mobile phones, and the severe drought that affected the country.

Ethiopia

We successfully launched our Ethiopian operations during the year under review. Despite execution delays, we are on track in that country, and are optimistic about the transformative opportunities it presents for us. Our focus has been to accelerate the pace of rollout and we have now covered 22 large- and medium-sized cities, representing a population coverage of 22%, with plans underway to roll out to those cities remaining.

Financial Outlook

Our focus in FY2024 will be to scale technology solutions by accelerating new growth areas including IoT, ICT, Cloud, Content, Fixed Business and Next Financial Services, to become the partner of choice for government by delivering top government projects and scaling our Ethiopia operations. In line with our expectations, Safaricom Ethiopia will require significant investment in the initial years of operations before becoming profitable. In view of these factors, we expect FY24 Safaricom Group EBIT to be in the range of KShs 75 to 81 billion and KShs 82 to 90 billion in capex. Excluding Ethiopia, our EBIT guidance for Safaricom Kenya is expected to be in the range of KShs 117 to 120 billion, and KShs 42 to 45 billion for capex. Our EBIT guidance for Safaricom Ethiopia is expected to be in the range of KShs (42 to 39) billion, while capex is expected to be within the KShs 40 to 45 billion range.