Safaricom half-year earnings fall by 17% to Ksh28bn

Safaricom, one of the leading telecommunications companies in Africa, recently reported a 17% drop in its half-year earnings to 28.1 billion shillings. The decline was attributed to currency volatility affecting the company's Ethiopian subsidiary, with the Ethiopian biir depreciating by 15.5%. Despite the challenges faced, Safaricom's CEO, Peter Ndegwa, remains optimistic about the future growth prospects of the company. In a recent interview with CNBC Africa, Ndegwa highlighted the various initiatives and innovations Safaricom is implementing to drive growth and enhance customer experience. Ndegwa discussed the company's focus on building an ecosystem that supports customers' digital lifestyles and highlighted the launch of the 'Grow With Safaricom' business program aimed at empowering MSMEs. Additionally, Safaricom has introduced a new converged billing platform to improve billing processes and enhance customer experience. The company has also made significant investments in its fixed business, increasing speeds for both home and enterprise customers. In response to the growing demand for enhanced connectivity, Safaricom has introduced a 1Gbps platinum plan and is leveraging its investment in 5G technology to expand coverage across Kenya. Ndegwa also provided insights into Safaricom's business in Ethiopia, noting positive macroeconomic indicators and significant reforms in the foreign exchange regime. Despite short-term challenges, including financial impacts due to currency depreciation, Safaricom remains confident in the long-term success of its Ethiopian operations. Ndegwa emphasized the company's commitment to navigating challenges and implementing strategic measures to mitigate risks while positioning Safaricom for sustainable growth and profitability.