• Shareholders

Our shareholders expect us to remain a high-performing company that balances delivering consistent and sustainable financial returns against ethical and environmentally responsible operation. As a reflection of this, they expect us to retain a stable, experienced and proven management team and to uphold the very highest standards of corporate governance and practices.

SHAREHOLDING STRUCTURE

Our shareholding structure remained unchanged during the year and continues to be composed of the Government of Kenya (35%), Vodafone (40%) and free float (25%).

While the overall shareholding structure hasn’t changed, we have noticed a decline in retail shareholders and an increase in corporate shareholders within the ‘free float’, especially foreign corporates. The following table presents the movements in proportions of our shareholder categories from March 2015 to March 2017.

As the table below illustrates, foreign corporates hold the highest proportion of the free float, approximately 52%. While the number of local companies holding shares in Safaricom has been on a decline, the proportion of shares they hold has also been decreasing and, currently, these companies hold 31.4% of the free float. Holdings by both retail and corporate local investors have been on a decline. We attribute this partially to profit taking as the share rose to new levels. Holdings by both individual and corporate foreign investors have been on an increase as they take positions in Safaricom attracted by its performance and strong fundamentals.

FY17 HIGHLIGHTS

We continue to monitor our performance and deliver value to our investors through our strong financial performance and through how we engage and communicate with them. We delivered strong financial performance yet again this year, which has resulted in further dividend growth and share appreciation.

During the year, our net income grew by 27.1% to KES 48.4 billion, up from KES 38.1 billion in FY16. This includes a once-off payment of KES 3.4 billion from the Kenyan government for the National Police Service Project. Our free cash flow also increased from KES 30.4 billion in FY16 to KES 43.5 billion. We also achieved an EBIT of KES 103.6 billion, up from KES 83.1 billion in FY16.

We continue to engage with individual investors, fund managers, analysts and other members of the investment community actively. On a regular, ongoing basis, we deliver value to these important stakeholders by ensuring that we are available to them and respond to their telephonic, email and message-based enquiries swiftly. We also publish an annual report to keep investors updated on financial and non-financial performance, and we hold an annual general meeting, which provides a forum for discussion and debate with shareholders.

We also disseminate information about financial results, reports and upcoming events to them via press releases and other communiqués. In addition, we will invite shareholders and other members of the investment community to briefings and workshops as required.

During the year, we participated investor road shows to share our interim and full year results. During these roadshows, we update shareholders on our strategy and outlook. A highlight during the year was undertaking our first roadshows in Scandinavia, specifically, Sweden and Denmark. We are also considering introducing video conference calls with investors in countries like Canada in the near future.

We maintain an up-to-date investor dashboard on the Safaricom website as well, which enables investors to access a wide range of information conveniently and easily, including our investor calendar of events and forms, analyst coverage, fact sheets, share price information, half year and full year results, along with information regarding our current governance processes, sustainability objectives and performance.

Looking Ahead

FY18 GOALS

  • Expanding investment clientele to include investors in untapped markets.
  • Taking a leadership role in championing sustainability and the SDGs in the corporate space.
  • Helping to communicate the SDG story and how the business is aligning its purpose of transforming lives through the SDGs.