Safaricom 2023 Sustainable Business Report

86 OUR BUSINESS KPI SUMMARY OUR MATERIAL TOPICS SAFARICOM SUSTAINABLE BUSINESS REPORT 2023 OUR STAKEHOLDERS that remuneration is, at the very least, commensurate with the minimum wage, and that appropriate personal protective equipment (PPE) is provided. A total of 86% of audits raised no major-non-conformances. Where gaps are identified, our approach is collaborative rather than punitive. We assist suppliers whose performance is below the required threshold (<80%) with customised performance improvement plans (PIPs) and mentoring towards achieving acceptable levels of service. During the year, 12 suppliers were on PIP and two suppliers had been lifted from PIP by year-end. SUPPLIER PERFORMANCE EVALUATION COVERAGE FY20 FY21 FY22 FY23 Supplier performance evaluations score (%) 82.61 86 88.87 85.8 No. of evaluations performed 1 025 1 493 1 594 1 860 Another initiative focused on upholding fairness throughout the value chain relates to ‘invisible’ workers who work in our premises for extended periods every day. This initiative, which began in 2019, seeks to entrench living wages and medical cover, amongst other things. The challenges we have identified include the activation of medical cards, delayed remittances of statutory payment, implementation of the minimum wage and uniforms for pregnant staff. Our aim is to drive home understanding of the need for compliance in the areas of human rights and labour laws. We are currently assessing ways of expanding compliance through consequence management. DEALERS The number of sales areas (now territories) and dealer relationship managers declined due to an internal review of the organisational structure which is focused on enhancing our service to our business partners. Territory Business Leads are now responsible for interacting with dealers, who also have access to a dedicated L300 Call Centre helpline. This gives dealers an escalation channel that is available 8:00am-6:00pm every day. The motorbike scheme was suspended as we seek to improve our Route to Customer (RTC) deployment. OUR DEALER NETWORK FY20 FY21 FY22 FY23 No. of active dealers 440 435 435 432 No. of dealer relationship managers 6 6 6 0 No. of area sale managers/ active sales managers 42 42 42 38 ENSURING THE SUCCESS OF OUR DEALER NETWORK In FY23, we focused on enhancing the potential for success of our dealers. One of the ways we did so was by enabling dealers to sell fibre to the home (FTTH) and entry level enterprise business unit (EBU) products which generated additional revenues. We reduced the price of fixed wireless access (FWA) routers to make them more affordable and allow customers to connect to the internet. Further, we facilitated opportunities for dealers to sell Lipa Mdogo Mdogo phones. The total number of phones sold through Lipa Mdogo Mdogo was 937 800, of which 243 890 were sold by dealers in FY23. In addition, we continued to provide financial support for the branding on a dealer vans. To ensure smoother running of day-to-day operations, we enabled automated KYC collection, and moved sim swaps to the Jiandikishe app and made reconciliation reports readily available to give dealers better visibility of their business. One of dealers’ key concerns related to timely commission payments. We have responded by implementing procedures to remedy this. AGENTS SUPPORTING OUR AGENTS We aim to support our agents to operate as profitable entities, providing them with a bouquet of products that are demand driven. They act as our brand ambassadors, helping us to reach a wide range of customers and driving our organisational agenda. We provide them with real-time data and analytics to help them in decision-making. In line with our intensified focus on Route to Customer, we have changed from relationship managers to three support channels detailed on the next page: MOBILITY SCHEME CUMULATIVE NUMBER OF BIKES FY20 FY22 FY21 FY23 2 465 2 633 2 515 2 515