The Kenyan government will have the final say on Safaricom's expansion beyond Kenya and Ethiopia, giving the State significant control over the company's future entry into new markets, which could require substantial capital expenditure.
Safaricom's Kenyan business remains highly profitable, helping to fund its start-up operation in Ethiopia, which is still loss-making. The Ethiopian venture, which is expected to boost the company's earnings once it becomes profitable, has slowed the Nairobi Securities Exchange-listed firm's ability to increase dividend payouts to shareholders.
