Safaricom intends to launch an M-Pesa service dubbed M-Pesa Junior for customers under the age of 18. The service is for the individuals who do not have IDs and cannot register for a Safaricom line but have access to the network through SIM cards registered under their guardians or parents.
While announcing the company’s full-year earnings for 2021, Chief Executive Officer, Peter Ndegwa stated that M-Pesa junior will be launched later in 2022.
The telco giant reported a 12.2 percent increase in net profit to Sh77.0 billion. Total revenue reached Sh281.1 billion. M-Pesa continues to be Safaricom’s biggest earner with transactions totaling Sh29.5 trillion during the same period.
Voice service revenue increased by 0.8% to Sh83.21 billion. While mobile data revenue increased by 8.1% to Sh48.44 billion. Customer growth slowed during the period due to ongoing changes in the subscriber registration process.
Despite this, the company’s one-month active customers increased by 4.3% to 32.81 million. Safaricom made Sh281 billion in revenue this year, up from Sh250.4 billion in 2020. This was due to increases in M-Pesa, mobile data, and fixed revenue.
Safaricom invested over Sh39.34 billion in Capital Expenditure (CAPEX) in Kenya. This investment was to maintain and expand the network, ensuring Kenyans have reliable network coverage and uninterrupted data services.
In addition, the telco invested Sh10.44 billion in Ethiopia to accelerate its network rollout plans. During the year, an interim dividend of KShs 0.64 per Ordinary share was declared, totaling Sh25.64 billion.
Additionally, a final dividend of Sh0.75 per Ordinary Share for the fiscal year ended 31 March 2022, amounting to Sh30.04 billion, will be proposed for approval at the AGM on 29 July 2022. This brings the total dividend for the fiscal year to Sh55.69 billion, or Sh1.39 per share.
Safaricom plans to accelerate new growth areas and deliver a superior customer experience in the new fiscal year, with the new business strategy and a renewed focus on the customer, in order to be a purpose-led technology Company by the end of 2025.