Sustainability Report 2016

66 / 84

Safaricom Sustainability Report 2016 66
BUSINESS PARTNERS
Our business partners include suppliers, dealers and agents. We rely heavily on our partners from both an operational
perspective and also in terms of our reputation. We also understand that we can play an important role in encouraging
sustainable practices throughout our business ecosystem and value chain by engaging with our partners in this regard.
In terms of our suppliers, we used 1,094 providers and spent a total of just under KSh 76.8 billion on products and services
during the reporting period. We continue to favour local suppliers where feasible and we are satisfied with the weighting
towards Kenyan companies achieved during the year, with 84% of our providers being local.
We have a network of 456 ‘active’ dealers across Kenya that sell data, devices and airtime on behalf of Safaricom. This is a
reduction from the 487 dealers we had last year and reflects the termination of contracts with dealers that did not meet the
requirements of their performance contracts during the year.
We believe that this is the right size of network to support the market at the moment so we are not actively on-boarding new
dealers and expect this number to remain fairly stable in the near future. Our current focus is not to increase the number of
dealers, but to help each individual dealer achieve
greater volumes and success.
We also have 100,744 M-PESA agents who support
and administer M-PESA-related transactions for
customers. Our network of agents grew by 17.5%
during the year as new areas of opportunity
were identified in response to our regionalisation
programme and the commissioning of additional BTS.
HOW DID WE DELIVER VALUE TO THEM DURING THE YEAR?
Suppliers
From the perspective of our suppliers, we delivered value to them during the year in the following ways:
• Annual Partners Forum
We meet with our suppliers every year to hear their concerns and exchange ideas and information with them. During
the event, we conduct a survey to assess their perceptions and levels of satisfaction and confidence regarding
Safaricom. We use the feedback gained through the survey to adjust our processes and offerings to partners.
We held a meeting on 9th February 2016 with our contracted partners to sensitise them to the Code of Ethics for
Business in Kenya. The Code is based on the principles of the United Nations Global Compact (UNGC). By the end of
the financial year, 269 or 81% of suppliers with running contracts had signed up to the Code of Ethics for Business in
Kenya. Through such efforts, we continue to play a role in building the critical mass of businesses needed to create a
responsible business community in Kenya. At the time of this report being published, 95% of our suppliers had signed up
to the Code. For the suppliers who failed to sign up, the business made a decision not renew their contracts once they
expire and not to engage with them on future opportunities until they sign the commitment.
• Performance evaluations
We undertake performance evaluations of all of our suppliers on a quarterly or bi-annual basis. Suppliers are measured
against a variety of indicators (e.g. cost, quality, delivery, responsiveness, flexibility, value-add, health and safety) and a
performance score is calculated.
Suppliers whose performance is below the required threshold (<60%) are assisted with customised performance
improvement plans (PIP) and mentored towards achieving acceptable levels of service. In case of lack of
improvements after a PIP has been implemented, the contract is recommended for termination and no invitations are
sent for participation in future business opportunities.
For further, detailed information regarding
our supplier spend and network, please
visit the companion website for this
report at
sustainabilityreport_2016/