Safaricom Strengthens its Position in the Kenyan Economy by Creating 1.1 million Jobs

Safaricom’s operations supported more than 1.1 million jobs directly and indirectly at the end of last year as it increased its economic contribution to Kenya, according to a study by the KPMG.

According to Safaricom’s report, the telecommunications company’s voice, data, and M-Pesa businesses created both direct and indirect jobs through their goods and services, such as airtime dealers, M-Pesa agents, and distributors.

The KPMG study aimed to quantify Safaricom’s value to the biggest economy in East Africa outside of financial results.

As per the most recent report, Safaricom’s economic activities supported close to 1,135,588 jobs in the three months that ended in March, up from 1,003,669 a year prior, defying the trend in corporate Kenya, where many businesses saw their hiring freeze.

The telco’s overall business operations contributed Sh727 billion to the economy in the year leading up to March, or 5.25 percent of Kenya’s GDP. This increased from Sh664 billion the previous year.

“The true value assessment calculates that Safaricom sustained over 214,203 direct and indirect jobs during the year. If the wider induced effects on the economy are included, this number increases to over 1,135,588,” said Safaricom in the report.

As of March 2022, the company employed 5,852 people, who took home a combined Sh22.55 billion in wages, bonuses, pension contributions, and employee performance share awards.

Thousands of agents work for M-Pesa alone, a major player in the country’s payments system thanks to its widespread use by merchants.

Safaricom’s network of 435 dealers, thousands of airtime retailers, 262,000 M-Pesa agents, and other third-party engagements with banks, supermarkets, utility companies, and insurance companies that use the telco’s services contributed to the creation of the extra jobs.

Last year, Safaricom spent Sh94.6 billion on goods and services from a total of 799 suppliers, which helped to support more than one million jobs.

The telecoms company’s economic impact is 10.4 times the earnings, with an Sh68.67 billion net profit for the fiscal year that ended in March 2022.