Published On: Thu, Dec 3rd, 2015

Safaricom reveals input to Kenya wealth creation

KE GDP finNAIROBI, (CAJ News) – SAFARICOM has generated KSh315 billion (US$3,08 billion) to Kenya’s gross domestic product (GDP) from last year to date.

Global consultancy firm, KPMG has confirmed the figures, suggesting the mobile network operator contributed 6 percent of GDP in total.

KPMG disclosed the figures in its first True Value report in Africa.

The exclusive report finds that Safaricom generated societal value for  Kenya at least nine times greater than their financial profit in the financial year 2015.

Covering Safaricom’s True Value during the 2014/5 financial year, the  report says that Safaricom’s operations sustained about 682 000 jobs in Kenya during the year, representing about 4 percent of the total economically active labour force in Kenya.

Safaricom continues to be a major contributor to the revenues of the Government and remitted KSh54,8 billion in FY 2014/15, with corporate taxes and excise duties accounting for 70 percent of the total revenues
submitted to the republic.

M-PESA created an estimated value of KSh133,8 billion in the 2014/15 financial year which was four times the total amount of transaction fees  earned by Safaricom in the same period.

“This tells us that there is a bigger story that has driven the Safaricom  narrative over the last 15 years. We now have a picture of our True Value beyond our financial results. This value is directly attributable to our deep connection to this market, and our continued desire to create solutions for the mobile phones that can Transform the Lives of Kenyans,” said Bob Collymore, Safaricom Chief Executive Officer.

Safaricom commissioned KPMG to assess the broader economic contribution that its operations had in Kenya– including its economy, job creation, tax revenue and poverty alleviation for the 2014/15 financial year.

Neil Morris, Director, KPMG, said the True Value report aimed to discover an organization’s value to both the economy and society beyond traditional financial reporting.

“It allows companies to identify how business leaders can better understand the impact their organizations have on an economy,” said Morris.

– CAJ News

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