Safaricom’s latest Sustainability report titled Partnering for Growth: Transforming Lives, affirms that its True Earnings’ bridge which indicates that the total value Safaricom created for the Kenyan society was Ksh727 billion, approximately ten times greater than its financial profit. This represents a 9 percent increase from the previous financial year.
The report covers the company’s last fiscal year from 01st April 2021 to 31st March 2022 and highlights the progress it has made towards building a more sustainable business.
“As you will see in the report Safaricom demonstrated resilience in living true to our commitment of being a sustainable purpose-driven business that has delivered consistent returns to shareholders. Our business continues to contribute towards successfully improving the quality of life for Kenyans across the country by delivering a wide range of products, services and initiatives that support businesses, and communities”, stated Mr. Peter Ndegwa, Safaricom CEO.
The True Value assessment calculates that Safaricom sustained over 214,000 direct and indirect jobs during the year and, if the wider effects on the economy are included, this number increases to over 1.1 million jobs.
Speaking before the launch of the report, Dr. Edward Mungai, a sustainability expert explained that sustainability is what drives profitability. Some of its benefits include increased revenues, cost management, fiscal management, social license to operate and increased reputation.
He explained that the report should be balanced, in giving both positive and negative insights during the reporting period.
Since 2015, Safaricom has used the True Value methodology to quantify its positive and negative impact to society, the environment, and the economy in monetary terms.
Stephen Kiptiness, Safaricom’s Corporate Affairs Director stated that the company has three lessons from the reporting sustainability for the past 11 years. This includes knowing, showing and growing its numbers, setting the right messages from the board to the executive members and appreciating that sustainability is a journey that the private sector should lead.
The report states that M-PESA’s social value increased by 14 percent to Ksh275 billion driven by an increase in the number of customers, agents, merchants and the average number and value of transactions per customer.
From next year, all listed companies in the Nairobi Securities Exchange (NSE) will be expected to have accountability processes on sustainability reporting.