Safaricom, a leading telecommunications company in Kenya, has reported a significant economic impact of Sh1.247 trillion for the year ended March 2026. This represents a 10 percent increase from Sh1.133 trillion in the previous year and a 71.5 percent rise from Sh727 billion five years ago. The company's economic impact is a result of its operations, investment in infrastructure, and wider supply chains.
The breakdown of Safaricom's impact shows Sh654 billion in economic impact, Sh503.6 billion in social impact, and Sh95.6 billion in financial profit, partly offset by environmental costs of Sh6.43 billion. The company's chief executive, Peter Ndegwa, emphasized that sustainability and strategy come together in this achievement, highlighting the importance of expanding access, strengthening financial health, and supporting communities.
Safaricom's economic impact was driven by operating expenditure that supported domestic activity through its operations and Kenyan supply chains, alongside investment in telecommunications networks, digital infrastructure, and locally sourced goods and services. The company's operating expenditure generated Sh851 billion in gross economic activity, comprising Sh223 billion directly, Sh155 billion indirectly through suppliers, and Sh472 billion through induced activity as incomes were spent elsewhere in the economy.
The company's social impact captures benefits associated with M-Pesa, employment, community investment, and talent development. Safaricom reported that the social value of M-Pesa was Sh478.1 billion, while the social value of jobs supported was Sh15.1 billion. The assessment, conducted by Alexforbes, also applies a Sh57 billion adjustment for corruption in the wider Kenyan economy.
Safaricom's expenditure supported 25,178 direct and 285,311 indirect jobs, respectively, during the year. Including induced employment, the total rose to 1.405 million jobs, up from 1.334 million in the previous year. The company's growth was driven by operating expenditure that supported domestic activity through its operations and Kenyan supply chains.
Safaricom's environmental impact was negative Sh6.43 billion, largely reflecting the estimated social cost of carbon and energy use, although recycling activities generated some positive impact. The company's value-to-profit ratio fell from 16 times to 13 times, as financial profit grew faster than the impacts captured by the assessment.
Safaricom's achievement is part of its Vision 2030 ambition of becoming Africa's leading purpose-led technology company. The company intends to expand its impact assessment progressively to capture more positive and negative societal outcomes associated with its business, subject to reliable data and solid valuation methods. Safaricom raised its dividend by 66.7 percent to Sh2 per share for the year ended March 31, 2026, after posting a 67.3 percent rise in net profit to Sh99.7 billion.
Key points
- Safaricom's economic impact in Kenya reaches Sh1.247 trillion, supporting 1.4 million jobs.
- The company's social impact captures benefits associated with M-Pesa, employment, community investment, and talent development.
- Safaricom's growth was driven by operating expenditure that supported domestic activity through its operations and Kenyan supply chains.
