Safaricom’s H1 Profit Up 12.1% On High Fuliza Borrowing

 Safaricom’s H1 Profit Up 12.1% On High Fuliza Borrowing

Safaricom CEO Peter Ndegwa during the release of the HY Results. Image/Courtesy.

Kenya’s leading telco Safaricom Plc rebounded strongly from Covid-19 pressures, posting 12.1 per cent growth in net earnings in first six months of the year.

The firm whose earnings dropped for the first time in 12 years last year saw net profit grow to Sh37.1 billion in a period between April and September this year compared to Sh33 billion same period last year.

Safaricom CEO Peter Ndegwa has attributed the growth to increased revenue from M-Pesa, accelerated by high uptake of overdraft facility, Fuliza.

Internet revenue which grew 16 per cent and rebound in voice services and text services helped to prop up the growth.

‘’Gross profit rose 22.2 per cent to Sh54.68 billion compared to Sh44.74 billion similar period last year,’’Ndgewa said.

The total value of M-Pesa transactions grew 51.5 per cent to Sh13.71 trillion while total volume of transactions grew 42 per cent Sh7.27 billion.

The growth is attributed to a reverse on free fees on people to people, Lipa na M-Pesa transactions below Sh1,000 announced in March 2020 to cushion households from economic vagaries of Covid-19.

Chargeable transactions per one month active grew 91.9 per cent to 18.06 transactions per month in the period under review up from 9.4 transactions same period last year.

M-pesa wallet to bank and bank to M-Pesa wallet transactions are still zero rated and make up 18.1per cent of the total transactions.

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