SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 34 At the time of going to press with this report, the CA had not levied or imposed any fines on Safaricom. CONNECTING THE UNCONNECTED In FY19, we constructed 38 additional Universal Service Fund (USF) sites, which are currently active on the network, and we are in the process of handing these over to the Communications Authority. Under the USF initiative, these sites were rolled out in some of the most remote parts of the country to provide broadband coverage to marginalised Kenyans, including in areas that may not be financially viable for the business. We were commended by the Communications Authority for the timely completion and high quality of these sites. LOOKING AHEAD TO 2020 Future focus areas pertaining to the regulatory environment include: • strengthening our stakeholder engagements with regulators; • addressing the rising power of the consumer; • ensuring data privacy and protection; • building a culture of transparency; • enhancing our regulatory platform for innovations such as artificial intelligence (AI) and the Internet of Things (IoT). Case Study: Connecting the Unconnected In 2018, the Communications Authority of Kenya contracted Safaricom to set up base transceiver stations (BTS) in 78 remote, underserved sub-locations across the country as part of a KSh 1.2 billion deal to boost network connectivity. The roll-out of Safaricom BTS stations allows more entrepreneurs to open M-PESA agencies and accept payments via M-PESA, allowing customers to withdraw money from their bank accounts into their M-PESA wallets, making shopping easier and driving economic growth. USF-funded sites are transforming lives across the country: Milore village in Kilifi County has grown into a business hub for the area, as has Oloodo village in Narok West Sub-County. So far, the USF has expanded mobile network coverage for 238,082 people, a figure expected to grow to 319,298 before the roll out is complete.