At Safaricom’s 15th Annual General Meeting (AGM), shareholders approved the creation of two new subsidiaries, marking a significant milestone in supporting tech entrepreneurs, fostering innovation, and solidifying Safaricom’s role as a vital enabler of Kenya’s tech community.
1. Empowering Seed-Stage Start-ups: Incorporating a Company Limited by Guarantee
Safaricom’s commitment to supporting seed-stage start-ups sees the incorporation of a company limited by guarantee, building on the success of the Spark Fund—an investment entity governed by a Board of Trustees.
This new entity aims to streamline administrative processes, enhance governance, and provide further empowerment and nurturing of seed-stage start-ups across Kenya.
2. Accelerating Safaricom’s Mission: The New Private Limited Liability Company
Additionally, a new private limited liability company will be established to invest in strategically aligned, mature entities, facilitating Safaricom’s mission of becoming a tech company by 2025.
This new subsidiary will serve as the primary investment vehicle for all strategic investments undertaken by Safaricom PLC.
CEO’s Vision: Empowering the Tech Ecosystem and Unlocking New Opportunities
Safaricom CEO, Mr. Peter Ndegwa, emphasized the company’s commitment to empowering the tech ecosystem in Kenya and beyond. He explained that incorporating these subsidiaries is pivotal in achieving Safaricom’s purpose of becoming a purpose-led technology company.
The new companies will play a crucial role in expanding Safaricom’s reach into various customer segments and unlocking new business models and value chain opportunities.
Investing in Emerging Technologies and Tech Entrepreneurs
Mr. Ndegwa expressed the company’s intent to invest in and support early-stage companies, especially those involved in emerging technologies such as analytics, Machine Learning, Artificial Intelligence, and the Internet of Things.
Safaricom plans to launch a call for applications in the coming weeks to identify and back promising tech start-ups.
Shareholders’ Support and Dividend Payout
The approval of the new subsidiaries received unwavering support from shareholders. Additionally, at the AGM, shareholders approved a final dividend of KES 0.62 per ordinary share, amounting to KES 24.84 billion.
This is in addition to an interim dividend of KES 0.58 per ordinary share, totaling KES 23.24 billion, approved by the Board in February 2023. The total dividend for the year stands at KES 48.08 billion, representing KES 1.20 per share for the year ended 31 March 2023.
The dividend will be payable on or about 31 August 2023 to shareholders on the Register of Members as of 28 July 2023.
Safaricom’s Resilience Amidst Challenges
Despite operating amidst tough conditions, including increased regulatory scrutiny, changes in taxation policies, political uncertainty, economic slowdown, and other challenges, Safaricom exhibited resilience and delivered a solid overall performance during the year.
Safaricom’s approval of two new subsidiaries demonstrates its unwavering commitment to driving tech innovation, fostering entrepreneurship, and making a lasting impact on society.
By investing in tech entrepreneurs and aligning with their strategic mission, Safaricom continues to connect people, opportunities, and information while driving innovation, creating value, and delivering superior performance for all stakeholders.