Safaricom has announced plans to provide 100% 4G network coverage across the country by the end of this year as part of its growth strategy to be a technology partner of choice
Safaricom CEO Peter Ndegwa made the announcement as he released financial results for the half-year ended 30 September 2020, which saw net profit decreased by 6.0% to US$300mn with service revenue hitting US$1.09bn.
“Our business has proved to be resilient despite tough operating conditions. There is no doubt that COVID-19 has dealt a huge blow to many people, not just in Kenya, but across the globe. This has been a tough period for businesses, small and large alike, and our customers,” noted Mr Ndegwa.
Despite a 4.8% drop in service revenue, Safaricom increased capital expenditure by 25.5% to US$210mn, signalling investment commitment to building a network infrastructure that supports the country’s economic development. Voice service revenue dropped by 6.5% to US$370mn while M-PESA revenue dropped by 14.5% to US$330mn.
“As we go into our third decade as an organisation, we aim to create a technology business by developing new digital ecosystems in health, agriculture and education sectors as we aim to provide digital solutions for our customers,” added Ndegwa.
Continued customer focus has led to a 10.2% increase in active subscribers over the period of one month, with customers growing across all revenue streams.
With the new business strategy and the renewed focus on the customer, Safaricom expects to build on this momentum that has been gained during the second quarter of the period under review.
“Among the customers, we will prioritise includes MSMEs & SMEs, who we will empower through tailor-made services and products to enable these entrepreneurs to manage their businesses better. This includes the innovative product, Pochi la Biashara, that will allow them to separate business and personal wallets and Lipa Na M-PESA Merchant App that enables small businesses to effectively manage their business tills,” said Ndegwa.
