This chart demonstrates how all factors have contributed towards the “True Earnings” of Safaricom for this period. Most noteworthy was the growing contribution from social externalities, particularly through the social value created by M-PESA as the product grew and evolved.
Throughout the period, the greatest contribution to “True Earnings” came from the economic value created through the operations and capital projects of Safaricom, whereas the negative environmental externalities, though recognised as a material topic, continue to have minimal impact.
The economic impact of the estimated KSh 262.6 billion in annual revenues generated from the Safaricom operations resulted in an estimated KSh 549.8 billion contribution to Gross Domestic Product (GDP). This GDP impact can be separated into a direct impact of KSh 152.7 billion, an indirect impact of KSh 94.7 billion and an induced impact of KSh 302.4 billion.
The total economic impact of the KSh 36 billion capital expenditure in Safaricom resulted in a total estimated GDP contribution of KSh 20.4 billion. This GDP impact can be separated into a direct impact of KSh 8.5 billion, an indirect impact of KSh 3.3 billion and an induced impact of KSh 8.6 billion.
The “Total Economic Value added” on the Safaricom True Earnings Bridge only includes the direct and indirect GDP impact associated with Safaricom operations and capital expenditure. Each year, a portion of the economic value generated by Safaricom is lost as a result of corruption that takes place in the Kenyan economy. It is important to note that this is not directly connected to the activities of Safaricom, but rather acknowledges the unfortunate reality that not all of this value is retained.