Safaricom shareholders have given their approval for the establishment of two new subsidiaries — one dedicated to investing in seed-stage start-ups and another focused-on growth-stage start-ups. The approval, which took place during Safaricom's 15th Annual General Meeting (AGM), represents a significant milestone in supporting tech entrepreneurs and strengthening Safaricom's role as a key enabler of the Kenyan tech community.
The first subsidiary, a company limited by guarantee, will invest in seed-stage start-ups and will complement the existing Spark Fund — an investment entity governed by a Board of Trustees that empowers and nurtures seed-stage start-ups across Kenya. The new entity aims to streamline administrative processes and enhance governance for these investments.
The second subsidiary, a new private limited liability company, will be tasked with investing in mature, strategically aligned entities that accelerate Safaricom's mission to become a tech company by 2025. It will act as the primary investment vehicle for all strategic investments undertaken by Safaricom PLC.
Peter Ndegwa, Safaricom CEO, expressed the company's commitment to empowering the tech ecosystem and broadening investments in both seed-stage and growth-stage start-ups. The establishment of these new subsidiaries is a pivotal step towards realizing Safaricom's vision of becoming a purpose-led technology company.
The new companies are expected to drive Safaricom's expansion into new customer segments within the consumer, financial services, enterprise and SME spaces, unlocking new business models and value chain opportunities. Safaricom plans to invest in and support early-stage companies, particularly in emerging technologies like analytics, Machine Learning, Artificial Intelligence, and the Internet of Things. The call for applications from start-ups will be launched in the coming weeks.
Adil Khawaja, chairman of the board, expressed gratitude to shareholders for their unwavering support in establishing the new subsidiaries. These investments in tech entrepreneurs and aligned initiatives will continue to transform lives by connecting people, opportunities and information while driving innovation and creating a lasting impact on society.
In addition to the new initiatives, shareholders approved a final dividend of KES 0.62 per ordinary share during the AGM, with a total dividend payout of KES 48.08 billion for the year ended March 31, 2023. Despite facing challenging operating conditions, including increased regulatory scrutiny and an economic slowdown, Safaricom exhibited resilience, delivering an overall solid performance throughout the year.