Safaricom Cooperative shareholders in for Ksh 142M payout

Safaricom Investment Co-operative shareholders will pocket Ksh 142.4 million as rebate payout for the year ended 31st December 2023.

The rebate payout approved during the 15th Annual General Meeting follows a Ksh 203.4 million the society reported as net profit during the period, though its a 23.5% drop when compared to Ksh 266 million it reported in 2022.

The net profit represents an 8.1% return on the members’ capital of Ksh 2.5 billion.

The total revenue from land and housing for the society over the period declined by 16.7% to Ksh1.5 billion from Ksh 1.8 billion recorded in the previous year.

“2023 was a year of great strides anchored on our 2023-2027 Strategic Plan with our success in automation, customer experience, expansion of diaspora markets from the USA to Burundi, Uganda, Rwanda, South Sudan, Oman, and the United Kingdom as well as set up of new business lines through our e-commerce and value-added services while driving internal efficiencies,” said Safaricom Investment Co-operative Chairperson Judy Runo.

Land business continues to be Safaricom Investment Co-operative’s biggest contributor to total revenue as it returned 90% of the total revenue delivering a gross revenue of Ksh 1.4 billion, with a net profit of Ksh 428.7 million in the same period.

The housing unit on the other hand contributed Ksh 51.6 million to the total revenue.

“Looking ahead, we remain cautiously optimistic about the future. We are committed to regaining our momentum and getting back on track with profitability through prudent financial management, operational efficiency, and strategic investments in areas with growth potential. By rebranding, we seek to align with emerging market trends in a move to ensure that the company’s image resonates with the values and expectations of the target audience, giving the brand a cutting edge. The rebranding exercise is a strategic move that will redefine our brand narrative, thus positioning us for future success. We have put together a roadmap with key focus areas lined up that will see the execution of a successful rebrand,” added Runo.

Runo also announced the exit of Safaricom Investment Co-operative CEO Sarah Wahogo who will be leaving to pursue her personal interests.

During her tenure, Wahogo has been at the forefront in the automation of services, positioned the Society through strategic partnerships and brand-building efforts, re-energized member engagements and solidified Diaspora engagements as a key business focus, led the recruitment of a highly skilled management team and drove cost efficiencies across the business lines.

The Finance Manager Stephen Mbugua will be the acting CEO as the Society undertakes the process of finding the next CEO to take up the Society’s mantle.