Kenyan Economy gets sh414 Billion from Safaricom

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Kenyan economy gets sh414 billion from Safaricom according to the company’s second True Value Report done by audit firm KPMG.

This estimated value added to the Kenyan economy, is 31.42 per cent more than Sh315 billion the previous year.

Chief executive Bob Collymore said the number of jobs created is higher when larger effects of the Kenyan economy are included.

“Safaricom sustained over 182 883 direct and indirect jobs during the year and, if the wider effects on the Kenyan economy are included, this number increases to over 845 846 jobs.,” he said yesterday during the launch of the report in Nairobi.

Safaricom currently has about 182,833 in direct and indirect employment which is 63.24 per cent more than the previous year’s 112,000.

According to the KPMG report, MPesa is the greatest contribution to social value by Safaricom in 2016.
The estimated value is 10.8 times more than Sh38.1 billion record net profit Safaricom reported during the financial year.

This is about six per cent of the country’s national wealth, also known as the gross domestic product which was estimated at $63.40 billion (Sh6.40 trillion) in 2015.

KPMG used its own true-value formula to analyse social economic and environmental impacts of Safaricom on the people and government.

It shows the social value created by MPesa, Safaricom’s money transfer platform, was Sh184.5 billion, excluding transaction fees.

This is 4.45 times the Sh32.63 billion transaction fees earned by Safaricom in the same period and meaning Sh67.36 of value is being created for Kenyan economy for every MPesa transaction that takes place.

The report shows the capital expenditure of Safaricom in the period created Sh15 billion in direct and indirect value, and Sh27 billion with the wider effects on the Kenyan economy.

Collymore, however, said this value was eroded by corruption in Kenya.

“This is not directly related to the operations of Safaricom, but the assessment acknowledges that corruption is likely to prevent some of the economic value that Safaricom creates from reaching the intended recipients,”

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