Safaricom’s share price surged to a near three-year high last week, closing at Sh25.50 on Thursday, marking a 6.3 per cent rally and reflecting renewed investor confidence. The telecoms giant has seen its stock steadily climb from a low of Sh14.10 in early June, translating to an impressive Sh11 gain per share and a year-on-year growth of 36.9 per cent.
This rally pushed investors’ paper wealth past the Sh1 trillion mark for the first time since 2022, buoyed by positive developments including Safaricom’s acquisition of a mobile financial services license in Ethiopia. The expansion into the Ethiopian market is viewed as a key growth frontier for the firm.
Safaricom’s Chief Finance Officer, Dilip Pal, attributed the bullish sentiment to the company’s strong strategic direction. “This means value for our investors and speaks to our mission of transforming lives. The surge is a market response to several growth strategies we are executing,”
Safaricom has committed to becoming a purpose-driven technology company, focusing on digital innovation, customer-centric services, and sustainable development. The company’s latest full-year financials ending March 31, 2025, showcased net income of Sh69.8 billion and revenues of Sh381.2 billion, an 11.4 per cent increase from the previous year.
Dividend payouts also remained attractive, with shareholders receiving Sh48.08 billion, comprising a final dividend of 65 cents per ordinary share and an interim payout of 55 cents.
The ripple effect of Safaricom’s performance was felt across the Nairobi Securities Exchange (NSE), where the All Share Index rose 2.82 per cent to surpass 140 points for the first time since September 2022. Total market capitalization grew to Sh2.21 trillion, a Sh60 billion gain in a single session.
Since its October 2023 low, the NASI has added Sh861 billion in investor wealth and is up 13.86 per cent year-to-date. Concurrently, Treasury bill auctions remain robust, with the June 12 auction oversubscribed by 237.4 per cent, reflecting strong liquidity and declining interest rates.
Safaricom’s resurgence is not only a win for its investors but a major catalyst for the broader market’s recovery.
