Safaricom shareholders have approved the creation of two new subsidiaries, one focused on investing in seed-stage startups and the other on growth-stage startups.

The two were approved at Safaricom’s 15th Annual General Meeting (AGM) held on Friday, representing a significant step towards supporting tech entrepreneurs, fostering innovation, and strengthening Safaricom’s role as a key enabler of the Kenyan tech community.

The incorporation of a company limited by guarantee to invest in seed-stage startups builds on the Spark Fund, an investment entity by Safaricom PLC designed to empower and nurture seed-stage startups across Kenya.

This new entity is expected to streamline administrative processes and enhance governance.

The new private limited liability company will be mandated to invest in mature, strategically aligned entities that will help accelerate Safaricom’s mission towards becoming a tech company by 2025.

This entity will also act as the main investment vehicle for all strategic investments undertaken by Safaricom PLC.

Safaricom CEO Mr Peter Ndegwa said: “We are committed to empowering the tech ecosystem in Kenya and beyond, and this strategic move will enable us to broaden our investments, embracing both seed-stage and growth-stage start-ups. Incorporating these subsidiaries is pivotal to realising Safaricom’s purpose to become a purpose-led technology company.”

At the AGM, shareholders also approved a final dividend of Ksh 0.62 per ordinary share with the dividend payout amounting to Ksh 24.84 billion.

The dividend will be payable on or about 31 August 2023 to the shareholders on the Register of Members as at the close of business on 28 July 2023.


 

 

Community Engagement Editor, connecting audiences with news and promoting diverse voices. He also consults for East African brands on digital strategy.

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