Suspension of major Kenyan betting firms has disrupted Safaricom’s six-month income. It is reported that the crackdown has upset the transactions value, resulting in a drop of 59.3 percent.
The company’s financial results for the first half of the year shows that transaction value has dropped from Sh83 billion to Sh49.2 billion compared to the same period last year.
Safaricom CEO Peter Ndegwa said that the business has continued to be resilient despite tough operating conditions in light of the coronavirus pandemic. The pandemic has in fact affected businesses in Kenya and the rest of the world.
More recently, the telco has pledged to provide 100 percent 4G network coverage across the country by the end of the year. It now seeks to become a ‘purpose-led technology company by 2025’. Under the terms of its coverage plan, Safaricom will increase its capital expenditure by 25.5 percent to $208 million, media reports said.
It is reported that Safaricom’s service revenue had dropped 6.5 percent to Sh40.19 billion, while its M-Pesa revenue had slumped 14.5 percent to Sh35.89 billion.
Michael Joseph, Safaricom board of directors chairman, told the media, “The Board is encouraged by the positive trajectory witnessed going into the second quarter of our financial year. We remain steadfast in ensuring management continues to build on the strong company position that has been established over the last 20 years, running a purpose-driven business, that continues to transform lives and drive future growth.”