Safaricom to pay first ever interim dividend of $164m

Safaricom to pay first ever interim dividend of $164m

Shareholders follow proceedings during a past Safaricom annual general meeting in Nairobi. FILE PHOTO | NMG Safaricom is set to pay an interim dividend of Ksh18 billion ($164 million) equivalent to Ksh0.45 per share for the first time, citing good financial performance and the need to support investors amid the Covid-19 pandemic.

The telco will pay the dividend on or about March 31 to shareholders on record as of March 5.

“This is in recognition of the company’s solid half-year performance and to support our shareholders during these difficult economic times occasioned by the Covid-19 pandemic,” Safaricom said in a statement on Thursday.

The National Treasury is one of the biggest beneficiaries of the surprise dividend announcement and will get a gross payout of Ksh6.3 billion ($57.5 million) for its 35 per cent stake in the country’s most profitable firm.

Multinationals Vodacom Group Limited and Vodafone Group Plc will share a gross payout of Ksh7.2 billion ($65.7 million) for their combined 40 per cent interest in the Nairobi Securities Exchange-listed company.

Safaricom’s net profit in the half-year ended September dropped six per cent to Ksh33 billion ($301.5 million) due to the removal of fees on M-Pesa transactions of up to Ksh1,000 ($9.14) to support customers during Covid-19 period.

Its performance in the full year ending March is expected to show an improvement following the reinstatement of charges on low-value M-Pesa transactions starting January 1, a boost to earnings in the last quarter.

The interim dividend has accelerated payouts to shareholders who normally receive the cash distributions once in August or September.

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.

Leave a Reply