We continuously monitor and measure our contribution to Kenyan society. One of the ways in which we do so is by assessing our significant value to society. Since 2015, we have used a structured impact modelling tool – the KPMG ‘True Value’ methodology – to quantify the positive and negative impact of our organisation on society, the environment, and the economy in monetary terms. The following ‘True Earnings’ bridge highlights both our resilience as a business and our strong fundamentals by showing that the total value we created for Kenyan society in FY22 was KSh 727 billion, 10.4 times greater than the financial profit we made during the year.
TRUE VALUE: IMPACT ON SOCIETY
The True Value assessment calculates that Safaricom sustained over 214 203 direct and indirect jobs during the year and, if the wider (induced) effects on the economy are included, this number increases to over 1 135 588.
Impact on society
- 10.4 times more than profit generated (profit of KSh 69.6 billion excluding minority interest in Ethiopia)
- Total True Earnings (🢑8%)
- Economic value added through operations KSh 393 billion (🢑9%)
Social Value of M-PESA
- KSh 275 billion (🢑14%)
Environmental externalities
- KSh 1 189 million (🢑25%)
We remain committed to our purpose of transforming lives. Our latest True Value Report indicates that the true value to Kenyan society we created (the cumulative outcome of the economic, social, and environmental impacts highlighted on the True Earnings bridge) increased by 8% from FY21 to FY22. It also indicates that we contributed a total of 5.25% to Kenya’s gross domestic product (GDP).
As we continue our journey of becoming a purpose-led technology company, we continue to leverage the power of mobile technology to deliver shared value propositions that disrupt inefficiencies and impact lives positively in the health, agriculture and education sectors. The following is an independent analysis of Safaricom’s True Earnings by KPMG.
HOW WE ARRIVE AT THESE NUMBERS
KPMG first performed a True Earnings exercise for Safaricom in 2015 to identify our most material socioeconomic and environmental impacts and to quantify these in financial terms. During that year, Step 1 of the True Value methodology was conducted to estimate our True Earnings. Primary research enabled us to complete this exercise and to ascertain the social value created by M-PESA, in particular. To quantify this social value, principles from the Social Return on Investment (SROI) – an open source, principles-based methodology used to account for social impact – were used.
More detail regarding the 2014/15 True Earnings exercise can be accessed at: https://bit.ly/3SfoBzD Since 2014/15, Safaricom has used ‘True Earnings’ as a way of understanding and expressing the value that we create for society.
Various assumptions were adjusted to reflect changes in the operating context and product offerings. In 2020/21, the primary research was reperformed to ensure that the assessment accurately incorporates the impacts experienced by Kenyan society.
Furthermore, the model utilises informed assumptions which are based on primary and secondary research. These assumptions are interrogated internally and confirmed to be the most appropriate within the specific Kenyan context.
In future, we will need to continue to revise and update the model at specific intervals to reflect the changes in our operating context and the evolution of our product offerings.
As climate change is a dynamic field, the KPMG methodology of quantifying the impact of environmental externalities such as waste, water and carbon emissions was updated for FY21/22.
