Telco giant Safaricom has announced it will maintain its interim dividend at Ksh 0.55 per share, totaling Ksh 22.04 billion, despite facing significant hurdles in its Ethiopian operations. The dividend announcement follows a challenging half-year period that saw the company’s net profits decline by 17.7% to Ksh 28.1 billion.
The interim dividend, approved by Safaricom’s board yesterday, will be paid to shareholders on record as of March 3, with disbursement scheduled for March 31 this year. This marks the second consecutive year the company has kept its mid-year dividend at Ksh 0.55, following a reduction from Ksh 0.64 per share in 2022.
Safaricom’s recent financial performance has been significantly impacted by currency challenges in Ethiopia, where sharp depreciation of the local currency resulted in foreign exchange losses of Ksh 17.7 billion at its Addis Ababa subsidiary.
Despite these setbacks, Safaricom’s market performance has remained steady, with its share price on the Nairobi Securities Exchange surging by 34% over the past year to reach Ksh 17.70.
The dividend distribution will see the Kenyan government, which holds a 35% stake through the National Treasury, receive approximately Ksh 7.7 billion. Vodafone and Vodacom, joint owners of a 40% stake, will collect Ksh 8.8 billion, while retail investors will share the remaining Ksh 648 million.
Historical dividend patterns suggest Safaricom might maintain its final dividend at Ksh 0.65 per share, as the company typically aligns changes in its interim and final dividend payments. This development comes as Safaricom continues to maneuver regional expansion challenges while maintaining its position as one of the NSE’s top performers.
