LISTED telecoms service provider Safaricom had a good run on the market with the stock rallying north of 6.3 per cent, closing trading at a stock price of 25.50 as of Thursday last week.
This means investors who took position at a low of Sh14.10 gained Sh11 per share as the share progressively gained daily since June 3. The share price has gained 36.9 year-on year.
This saw investors’ paper wealth rise above Sh1 trillion for the first time since 2022 after the telco secured a mobile financial services license in Ethiopia.
In an exclusive interview with the Star, Safaricom chief finance officer Dilip Pal termed the surge in the firm’s share price at the Nairobi Securities Exchange as a testament to the company’s robust strategy geared towards transforming lives.
“It is good to see the share price surge. This means value for our investors, speaking to our overall mission of transforming lives. The surge, however, is simply a market reaction to a number of growth strategies we are implementing,’’ Dilip said.
Safaricom's strategic plan aims to transform into a purpose-led technology company, focusing on customer-centricity, digital innovation, and sustainable growth.
This involves leveraging technology to enhance customer experiences, expand into new growth areas, and maximize the value of its existing platforms.
Safaricom reported Sh69.8 billion in net income for the full-year ending March 31, 2025, as the telco registered double-digit growth in both mobile money and broadband. Total revenues hit Sh381.2 billion, up 11.4 per cent compared to the previous year.
The strong results were achieved through sustained innovation across the firm's product portfolio, expansion into Ethiopia, and continued support to communities by investing more than Sh18 billion in education, health, environment and economic empowerment initiatives over the last five years.
This saw the telco pay out Sh48.08 billion in dividends to its shareholders for the year, adding a final dividend of 65 cents per ordinary share to the interim dividend of 55 cents per ordinary share already paid out.
Positive sentiment extended to the broader market, largely driven by Safaricom’s outsized influence on the index.
The NSE All Share Index climbed 2.82 per cent on Tuesday, closing above 140 points for the first time since September 9, 2022.
This surge increased the total market capitalisation to Sh2.21 trillion, up from Sh2.15 trillion in the previous trading session.
Since hitting a low of 85.54 points in October 2023, the NASI added Sh861 billion in wealth to its investors. Year-to-date, the NASI is up 13.86 per cent, reflecting a sustained recovery and growing investor confidence.
The NASI, NSE 25 and NSE 20 share price indices increased by 9.2 per cent five per cent and 2.4 per cent respectively during the week ending June 12, Market capitalization, equity turnover and total shares traded increased by 8.4 per cent 167.2 per cent and 90.1 per cent respectively,
The Treasury bill auction of June 12 received bids totalling Sh56.97 billion against an advertised amount of Sh24 billion, representing a performance of 237.4 per cent. Interest rate on the 91-day, 182-day and 364-day Treasury bills declined.
