Safaricom to pay Sh23.4 billion dividend in March
The Safaricom head office in Nairobi. The dividend announcement is an indication that Safaricom's financial performance remains strong.
Safaricom shareholders will enjoy a Sh23.4 billion dividend payout next month, an equivalent of Sh0.58 per share, the telecommunications firm said on Monday.
The company’s board approved the payout following a meeting held on February 24, a statement from Safaricom company secretary Kathryne Maundu said.
“The Board of Safaricom PLC is pleased to announce that at its meeting that was held on February 24, 2023, it was resolved to approve the payment of an interim dividend of Sh0.58 per ordinary share held, amounting to Sh23.42 billion for the year ending March 31, 2023,” the firm said.
The public announcement also stated that the dividends will be paid to Safaricom shareholders in late March, around the time when the telco’s financial year ends.
“The interim dividend will be payable to shareholders on the register of members as at the close of business on March 15, 2023, and will be paid on or about March 31, 2023,” the company stated.
The announcement of the interim dividend is an indication that the company’s financial performance remains strong, even after its profits for the first half of the current financial year dropped by 18.4 percent to Sh30 billion.
Safaricom blamed the fall on heavy costs incurred during its entry into the Ethiopian market, a review of the Mobile Termination Rate (MTR) during the period, and the introduction of an Excise Tax on SIM Cards.
“We’ve only had a two months’ impact on MTR because the new rate was introduced in August. If you annualise that, it will be Sh3 billion impact on our business. It has a substantial impact on our business,” Safaricom CEO Peter Ndegwa said as the company released its half-year results last November.
