Annual Report & Group Accounts

For the year ended 31st March 2012

Safaricom 2.0 is all about change and focus; changing our structure, our culture and our mindsets and focusing on delivering superior customer service.

Business Overview

If you wish to have a quick look at how we've been performing, you can get a snapshot.


Performance Reviews

"In the next financial year, we will consolidate our position as market leader by being more innovative.


Strategic Reviews

To sustain our market leadership, we have been providing exceptional services to our customers.



In line with the Kenyan Companies Act, the directors have a report and audited financial


Performance at a Glance

If you wish to have a quick look at how we've been performing, you can get a snapshot, in figures and diagrams, right here


+ 13.0%
Ksh. 107.00 Billion
  2011 2012


+ 5.0%
Ksh. 37.50 Billion
  2011 2012

Net Income

- 4.0%
Ksh. 12.63 Billion
  2011 2012

Free Cash Flow

Ksh. 9.35 Billion
  2011 2012

Chairman's Statement

"In the next financial year, we will consolidate our position as market leader by being more innovative and staying closer to our customer." - Nicholas Nganga, Chairman.

Significant Micro-economic impact

This past financial year has been a turbulent year with the country experiencing a number of challenges that hampered its economic recovery.

Strategy and Operational Performance

Overall performance for the company was good in line with our strategic focus as detailed in our previous annual report. This is testament to the hard work by management, staff, our suppliers and our network of dealers & agents.

Risk Management at Safaricom

As a company that operates in and understands emerging markets, Safaricom believes that risk management is fundamental to effective corporate governance and the development of a sustainable business.

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Excellence in Customer Experience

To sustain our market leadership, we have been providing exceptional services to our customers. We continuously enhance our engagement with our customers through diverse channels. These include Voice, Walk-in, SMS, Email and Social Media.

Our customers are vital to our sustainability, especially in a highly competitive industry. Our focus is to deliver an unmatched customer experience as a key driver of our business.

We also recognize that our employees are fundamental in developing excellent customer experiences and we continuously develop them to deliver our values of Speed, Simplicity and Trust.

The network is core to our success and we are working towards wider, deeper, faster and smarter networks.

Strategic Progress

Our strategic priorities are provision of excellent customer experience, sustained revenue generation and driving operational excellence. We have made good progress in each of them.

Priority 1 : To provide excellent customer experience

Our goal is to grow customer base, improve our network and develop our employees

Priority 2 : Sustained revenue generation

Our goal is to reduce dependence on voice by focusing more on data and M-PESA

Priority 3 : Drive operational excellence

Our goal is to initiate cost-cutting measures while increasing revenue

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What We Do

We offer voice, data and money transfer amongst other services to over 19.1 million customers. These include individuals and corporate customers that are either PrePay or PostPay subscribers.

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Interview with the CEO

"Our ambition is to become the most admired business partner by developing cost effective solutions that will enable businesses to succeed," says Bob Collymore, Safaricom CEO.

Walk us through the year – what were the highlights and what kept you awake?

From an operational and financial perspective there is a lot for my team and I to be proud of. Despite an increasingly tough environment we grew our customers by 11% to 19.1 million and our revenue to Kshs. 107 billion – a 13% increase. In October we increased our headline voice tariffs, in response to tough economic conditions, and this combined with our increased customer base, helped grow voice revenues by 9% in the year. Free cashflow for the year significantly improved by 110% to Kshs 9.4 billion through EBITDA margin improvement and a positive impact from working capital management initiatives.

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How We Are Managed

Good governance is fundamental to business sustainability and Safaricom's management is committed to the highest level of corporate governance. To achieve this, we have put in place structures that support effective decision-making and control.

Risk Management


Risk Management

At Safaricom, Risk management is everyone's responsibility. The Risk Management Division inculcates and embeds a culture of continuous and proactive identification and management of risk factors that ensure that emerging opportunities and threats are optimally harnessed. Management has embraced this practice and carries out periodic risk assessments to monitor our rapidly changing environment.

These assessments are also used to ensure that our responses and controls are aligned to maximise value to the business. Independent assurance is provided by both internal and external audit functions while benchmarking to other leading Telecommunications operators is undertaken to ensure our Risk Management practices are improved year on year.




We are committed to ensuring that ethics and integrity become part of day to day Business in Safaricom.

- We have constituted an ethics committee as an oversight body driving the ethics and integrity agenda in the company
- We took an active role in drafting and signed up for the Kenyan Businesses Code of Ethics.
- We reviewed our ethical position and ethics management process to identify any improvement areas.
- We reviewed and approved code of ethics related policies such as the anti bribery policy, insider trading policy, gift policy and the blacklisting policy.




Good governance is fundamental to business sustainability. We continue to make sure that our governance structures support effective decision-making and robust control, and are aligned to changing requirements as well as local and international best practice.

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Who Governs Us

Our Board of Directors is comprised of professionals drawn from various fields. Their pooled experience in the corporate world is both broad and impressive. Read their profiles and find out more about them here

Mr. Nicholas Nganga

Chairman & Non Executive Director

Chairman Nicholas
Mr. Robert Collymore

Executive Director & CEO

C.E.O Collymore
Mrs. Susan Mudhune

Non Executive Director

Non Executive Director Susan
Mr. Joseph Kinyua

Non Executive Director

Non Executive Director Kinyua
Mr. Michael Joseph

Non Executive Director

Non Executive Director Michael
Ms. Karen Witts

Non Executive Director

Non Executive Director Karen
Ms. Nancy Macharia

Non Executive Director

Non Executive Director Nancy
Mr. Timothy Harrabin

Non Executive Director

Non Executive Director Timothy
Nicholas Jonathan

Non Executive Director

Non Executive Director Nicholas Jonathan Read
John Tombleson

Alternate To
Bob Collymore

Alternate To Bob Collymore, Tombleson
Mrs. Esther Koimett

Alternate To
Mr. Joseph Kinyua

Alternate To Mr. Joseph Kinyua, Koimett
Mrs. Enid Muriuki

Company Secretary

Security Muriuki

Who Leads Us

Our Executive Committee consists of a dynamic team that spearheads Safaricom's business principles in order to maintain the trust and confidence of investors, customers and the rest of staff.
Safaricom team

CENTRE FRONT: Robert Collymore CEO

FROM Left to Right.


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Corporate Governance Statement

The Board is in charge of the overall conduct of Safaricom's business. It is responsible for the management, direction and performance of the company and is accountable to shareholders.

At Safaricom, the Board of Directors and senior management are committed to the highest level of corporate governance, which we consider critical to business integrity and to maintaining investors' trust in the Company. We foster a culture that values and rewards the highest ethical standards and personal and corporate integrity. The Company expects all its directors, employees and suppliers to act with honesty, integrity and fairness. Our business principles set out the business standards and in turn, the standards we set ourselves, ensure we operate lawfully, with integrity and with respect, observing and respecting the cultures of the Kenyan people.

Sustained Revenue Generation

We have continued to register impressive revenue growth through innovation and by giving our customers unmatched services. Our core business remains voice but we are reducing reliance on this through diversification into non-voice services, with M-PESA and broadband being key drivers of revenue growth.

Despite macro-economic challenges the mobile service market in Kenya continues to grow with 28.1 million Kenyans now accessing mobile services. Mobile penetration is now just over 70% ; we still have significant room for further growth.

Our core business remains voice and voice revenues continue to show good growth. We are executing well against our strategy of growing revenues beyond voice - M-PESA & broadband being the main drivers of non-voice revenue growth.

Driving Operational Excellence

Operational Excellence

Our operational excellence is driven by innovation to find new ways of doing things better and faster to benefit our customers while reducing costs. It's also about responsible behaviour, especially in protecting the environment as well as safeguarding the health and safety of staff.

Social Responsibility

The Safaricom Foundation is the channel for our Corporate Social Investment. We work closely with various communities and seek to uplift their lives as a way of giving back part of what the Company has gained as a result of investing in and existing within these communities. Read more about the Foundation's CSR activities here

Notice of the AGM


Safaricom's Annual General Meeting for the year 2012 will be held at the Bomas of Kenya on Thursday, 13 September 2012 at 11:00 am. This NOTICE is in accordance with provisions of Article 149.


  • To receive, consider and adopt the Financial Statements for the year ended 31st March 2012 together with the Chairman's, Directors' and Auditors' reports thereon.
  • To approve a first and final dividend of 440% of the issued and paid up share capital of the Company for the Financial Year ended 31st March 2012 i.e Kshs 0.22 per share of Kshs 0.05 each to the Shareholders on the Register of Members as at the close of business on 13th September 2012 as recommended by the Directors, payable on or about 11th December 2012.
  • To note that in accordance with the provisions of Articles 90 and 91 of the Company's Articles of Association, Mrs Susan Mudhune retires at this meeting and, being eligible, offers herself for re-election.
  • To note that PricewaterhouseCoopers continue in office as Auditors by virtue of Section 159 (2) of the Companies Act (Cap 486) and to authorise the Directors to fix their remuneration for the ensuing financial year.
  • Any other business of which due notice has been given.

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Proxy Form

As a member who is entitled to attend this AGM and vote, you can appoint one or more proxies to attend and vote on your behalf, if you cannot be present in person. Duly completed Proxy Forms should reach the Secretary at least 48 hours before the meeting commences.

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We owe our progress and performance to two highly dedicated, competent and experienced teams. Our Board of Directors – the team that governs us and our Executive Committee – the team that leads us.

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Corporate Information

We owe our progress and performance to two highly dedicated, competent and experienced teams. Our Board of Directors – the team that governs us and our Executive Committee – the team that leads us.

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Annual Results Announcement

Annual Results Announcement