Safaricom is set to distribute Sh56 billion of its profits to its shareholders after the telco posted a 19.5pc rise (from Sh62.49 billion to Sh74.7 billion) in net profit in the year ended March.
This will boost the government’s cashflow as it is one of the major shareholders at the countries most popular network provider with a 35pc stake in the midst of the coronavirus pandemic. This means the Treasury will receive Sh19.6 billion.
South Africa’s Vodacom Group and its UK affiliate, Vodafone Group Plc, will earn Sh22.4 billion from their combined 40 pc equity in the firm.
The growth at the Ndegwa led Company was driven by higher revenue from its internet provision business and its mobile money business, M-Pesa.
The company registered a 4.9pc to Sh265.5 billion and with a drop in expenses, net profit grew to from Sh62.49 billion to Sh74.7 billion.
The Sh19.6 billion to be paid to the government is expected to help support the Treasury, with Kenya Revenue Authority (KRA) collections expected to take a major dip in the pandemic, the government needs the money.
The Treasury, arguing there was little cash in the reserves, recently suspended all payments owed to various individuals and entities until further notice,
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