Safaricom Becomes East Africa’s First $7 Billion Company

Safaricom PLC has become the first company in East and Central Africa to hit a market valuation of over $7 billion (approximately Ksh922 billion).

The telco’s share price surged to Ksh23.00 during Tuesday, June 10th trading session, the highest since March 7, 2023.

Therefore, its CEO, Peter Ndegwa, now oversees the most valuable company in East and Central Africa.

The stock closed at Ksh22.60, up 6.34% for the day, adding nearly Ksh60 billion in paper value.

Since October 2023, Safaricom has grown by 64%, with a year-to-date (YTD) gain of over 32.5%.

Also Read: CDSC Moves 16 Billion Safaricom Shares to Electronic System

Safaricom Boosts Overall Market

Consequently, the NSE All-Share Index rose 2.82% to close above 140 points,  its best one-day gain since March 2024, and the highest level seen since September 2022.

The NSE’s total market capitalization has now crossed the Ksh2.2 trillion mark, with Ksh861 billion added since the market began recovering.

At today’s Central Bank of Kenya exchange rate, Safaricom’s valuation translates to about $7.13 billion.

With Safaricom’s Ethiopia venture slowly gaining ground and tech-driven services like M-Pesa still expanding, the telco’s latest surge shows that there is more to come.

Meanwhile, the National Treasury announced plans to sell a portion of its 35% stake in Safaricom, valued at approximately Ksh280.5 billion in mid-May.

According to CS John Mbadi, the sale will be conducted before June 2026 to raise Ksh149 billion through privatization efforts. 

He explained that many other State enterprises are not fit for sale because they’ve been running at a loss for years, suffer from mismanagement, or are not set up as limited liability companies, factors that make them unattractive to potential buyers. The government and Vodacom each own 35% of the operator, while Vodafone owns 5%, and the remaining 25% is a free float.

Also Read: Safaricom Announces Dividend for Shareholders After Ksh69.8 B Profit

16 Billion Shares Moved to Electronic System

Earlier, the Central Depository and Settlement Corporation (CDSC) converted 16 billion Safaricom PLC shares from paper certificates to electronic form.

The transfer, initiated by Vodafone Limited, one of Safaricom’s major shareholders, marked a significant milestone in modernizing Kenya’s capital markets.

As a result, the total number of Safaricom shares held in the Central Depository System (CDS) has risen from 24 billion to 40 billion, now representing nearly all of the company’s issued shares.

CDSC indicated that the move boosts efficiency, transparency, and investor confidence.

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