This archive report was first published on 3 November 2019.
November 3, 2019
Under the interim leadership of Michael Joseph, Safaricom has been undergoing significant changes, including a shift towards cost-cutting measures and a renewed focus on customer experience.
One of the most noticeable changes is the reduction in security personnel at Safaricom shops, particularly in locations with ample security. This move is part of the company's efforts to shed unnecessary expenses and improve efficiency.
Joseph, who took over as interim CEO in July, has been reviewing contracts with service providers and pushing them to lower costs. The company is also working with communication firms to improve its public relations and customer service.
According to Joseph, Safaricom's financials are reflecting the impact of these changes, with revenues growing by 5.8% in the half year to September and net profit growing by 14.4% to Sh35.7 billion.
The company's earnings before interest and tax (EBIT) grew 12.7% to Sh49.82 billion in the six months compared to Sh44.22 billion during the same period last year. EBIT margin improved from 36.1% to 38.5%, creating capacity to continue investing.
Joseph emphasized that the cost-cutting measures are aimed at processes rather than people, and that the company is committed to improving customer experience. He noted that the company is working to improve relations with customers, including scrapping expiry dates on data and voice bundles and ensuring that customers are served within five minutes at Safaricom shops.
Joseph also expressed concerns about the rates charged by M-Shwari and KCB M-Pesa, services offered in partnership with NCBA Bank and KCB respectively. He wants to make financial services less expensive for customers and transform lives for people who rely on Safaricom services.
