Safaricom interim dividend jumps 42pc to Sh25.64bn
The dividend will be 42.44 percent higher or Sh7.64 billion more compared with a year ago.
What you need to know:
- The dividend will be 42.44 percent higher or Sh7.64 billion more compared with a year ago when it paid a first-ever interim dividend of Sh18 billion, equivalent to Sh0.45 per share.
Safaricom is set to pay an interim dividend of Sh25.64 billion, equivalent to Sh0.64 per share.
The telco said it will pay the dividend on or about March 31 to shareholders on record as of March 17.
The dividend will be 42.44 percent higher or Sh7.64 billion more compared with a year ago when it paid a first-ever interim dividend of Sh18 billion, equivalent to Sh0.45 per share.
"The board of Safaricom is pleased to announce that at its meeting that was held on 24 February 2022 it was resolved to approve the payment of an interim dividend of Sh0.64 per ordinary share held amounting to Sh25.64 billion for the year ending 31 March 2022," said Safaricom in a notice to shareholders.
"The interim dividend will be payable to shareholders on the register of members as at the close of business on 17 March 2022 and will be paid on or about 31 March 2022."
The National Treasury is one of the biggest beneficiaries and will get a gross payout of Sh8.97 billion for its 35 percent stake in the country’s most profitable firm.
Multinationals Vodacom Group Ltd and Vodafone Group Plc will share a gross payout of Sh10.2 billion for their combined 40 percent interest in the Nairobi Securities Exchange-listed company.
Safaricom’s half-year net profit to September rose 12.1 percent to Sh37.05 billion, with M-Pesa revenues driving the rebound on account of the end of free State-backed transactions to support customers during the Covid-19 period.
Its performance in the full year ending March is expected to show an improvement following the reinstatement of charges on low-value M-Pesa transactions starting January 1, a boost to earnings in the review period.
Safaricom is expected to announce a final dividend when it releases its results for the year ending March.
The telecoms operator has a policy of paying out at least 80 percent of net income as dividends.
Pressure from the Central Bank forced Safaricom to split its dividend payouts for the first time last year in a quest to shield the weakening shilling when the firm seeks dollars for repatriation to foreign investors, it emerged earlier.
