Safaricom has maintained its interim dividend at Ksh0.55 per share, amounting to a total payout of Ksh22.04 billion, despite facing a challenging financial year, particularly in its Ethiopian operations.
The company’s net profit for the half-year dropped by 17.7% to Ksh28.1 billion, but investors can take comfort in the fact that their returns remain steady.
Many had expected a lower payout given the company’s recent financial performance.
The board approved the interim dividend on 12th February 2025, and shareholders listed in the company’s register as of 3rd March will be eligible to receive their payout on 31st March.
This marks the second consecutive year that Safaricom has retained an interim dividend of Ksh0.55 per share, following a reduction from Ksh0.64 in 2022.
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A significant factor affecting Safaricom’s profitability has been the currency depreciation in Ethiopia, which resulted in foreign exchange losses of Ksh17.7 billion.
However, despite these financial hurdles, Safaricom’s stock has shown resilience, with its share price increasing 34% over the past year to Ksh17.70 on the Nairobi Securities Exchange.
The dividend distribution will see the Kenyan government, which owns a 35% stake, receive approximately Ksh7.7 billion, while Vodafone and Vodacom, joint owners of 40% of the company, will collect Ksh8.8 billion. Retail investors will share the remaining Ksh648 million.
Looking ahead, analysts predict that Safaricom may maintain its final dividend at Ksh0.65 per share, as the company has historically aligned its interim and final dividend payments.
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