Safaricom shareholders have appreciated a Sh. 214 billion gain in wealth this year after the company’s share reached a new record of Sh. 25 on Friday.
Safaricom’s share price rally on Nairobi Security Exchange (NSE) made the company the first listed company in Kenya to hit the Sh. 1 trillion mark in market valuation during trading.
As the stock closed on Friday, Safaricom earned a market capitalization of Sh. 981.6, which is 42.9% of the total value of all the NSE-listed firms. The company is now estimated at nearly a seventh of Kenya’s GDP of Sh. 7.1 trillion.
Safaricom has reported consistent growth in the previous years, which have helped it grow its dividends in the recent years, making it a site for investors.
The company’s revenue has been driven majorly by its internet growth as well as its M-Pesa mobile business. Revenue from calls also grew in their financial year that ended in March.
“Earnings margin improvement and reduced capital expenditure intensity are expected to sustain generous dividend payments going forward,” said Dyer & Blair Investment Bank head of research Linet Muriungi.
The patient investors who held on to their shares are now being rewarded for that, having added billions of shillings in capital gains that have been complemented by the consistent increase in dividends over the years.
Written by Collins Gathogo.
