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Safaricom shareholders have given their approval for the telecom company to invest in new and growing startups in the technology sector through the creation of two new subsidiaries. The decision was reached during the company’s 15th annual general meeting (AGM) held on Friday, signaling Safaricom’s commitment to strengthening its role as a key enabler of Kenya’s tech community.
With this approval, Safaricom will have the opportunity to invest in seed-stage and growth-stage startups, coming at a time when a lack of funding has led to the closure of several startups in Kenya. The move is aimed at empowering the tech ecosystem in Kenya and beyond, as Safaricom seeks to broaden its investments and support both early-stage and more mature start-ups.
Safaricom CEO, Peter Ndegwa, stated, “Incorporating these subsidiaries is pivotal to realizing Safaricom’s purpose to become a purpose-led technology company.”
Earlier this month, Safaricom had published a proposal to create two subsidiaries or repurpose existing ones to invest in startups and initiatives that foster the growth and development of tech entrepreneurs, with the expectation of a financial return.
The telecom company’s strong financial position and extensive networks are expected to play a crucial role in supporting the growth of startups and benefiting from innovative ideas that may otherwise have faced funding challenges.
The AGM also approved the proposed final dividend of Sh0.62 per ordinary share, amounting to Sh24.8 billion, which will be paid on or about 31 August 2023 to shareholders on the register of members as of 28 July 2023.
Despite posting a 22.2 percent decline in net profit for the full year ended March 2023, standing at Sh52.48 billion, down from Sh67.49 billion in the previous year, Safaricom’s investment in startups through its subsidiaries demonstrates its ongoing commitment to support and contribute to the growth of Kenya’s technology ecosystem.
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