Safaricom jobs machine registers marginal drop

Guests at the launch of the Safaricom Sustainability Report  in Nairobi on October 5, 2017. PHOTO | SALATON NJAU | NMG
Guests at the launch of the Safaricom Sustainability Report in Nairobi on October 5, 2017. PHOTO | SALATON NJAU | NMG 

Safaricom’s #ticker:SCOM voice, data and M-Pesa business sustained more than 823,243 jobs in the year to March 2017 compared to 845,846 jobs in the previous year, with the drop attributed to a cut in capital expenditure by the telecoms giant.

A study commissioned by the operator says the jobs include those held by its own workers and the linkages created by products and services such as airtime dealers, mobile money agents and distributors.

“The reduction in capex activity is the cause of the comparatively lower value of the ‘social value of jobs’ category, as less jobs were created through capex in the financial year 2017 than 2016,” says Safaricom in the report by consulting firm KPMG — ordered and paid for by Safaricom.

More than 154,370 jobs were directly related to Safaricom’s operations. This number is lower than the 182,883 jobs the operator reported a year earlier.

Official data released in April shows that the Kenyan economy created 832,900 new formal and informal sector jobs in 2016, down from 841,600 a year earlier, meaning Kenya’s most profitable company sustained almost an equal number of jobs. Safaricom, in its report, says further it injected Sh486 billion into the economy in the year to March, equivalent to 6.5 per cent of the GDP.

This is higher than the Sh413.8 billion injected last year buoyed by its network expansion.

“This is in contrast to the value created through operational expenditure, which was particularly high in financial year 2016 as a result of the active network expansion of the company during that period,” said the firm.

Its mobile money transfer service M-Pesa injected Sh159.6 billion into the economy in the period under review up 12 per cent from Sh143 billion in 2016.

“The major driver for this growth has been the increase in customer, agent and merchant numbers, as well as the increased value paid to M-Pesa and M-Shwari users in interest,” said Safaricom.