In its second report valuing the business impact in the economy, Safaricom’s true economic value report also shows that the company’s activities helped generate over 845,846 jobs in Kenya.
The report generated by KPMG places Safaricom’s true value at KShs413.8 billion, which is 10.86 times bigger than the KShs38.1 billion net profit for year to March 2016.
“The greatest contribution the company makes to Kenya’s Social Value is through M-PESA, which this year has contributed KShs184.6 billion to the economy, excluding transaction fees,” Safaricom chief executive Bob Collymore said. “This is 4.45 times the total amount of transaction fees earned by Safaricom in the same period.”
KPMG’s “True Value” methodology identifies the socio-economic and environmental impacts of the company and quantifies them in financial terms. The net value of the monetized positive and negative externalities (both the supply and distribution value chain) gives an indication of the company’s contribution to the country’s wealth created for the Kenyan people.
Also released was the company’s 2016 Sustainability Report: Widening Our View, Sharpening Our Focus. The Sustainability report looks at the business activities impact on the society and communities it operates viewed from an economic, environmental, social and governance impact perspective.
“Safaricom believes that we exist to Transform Lives. These two words capture our commitment to building a company that performs well, creating a tangible difference in the lives of our customers,” Collymore noted.
Safaricom’s value chain generates wealth ten times the amount the company earns in after tax profit.
“But we know that we cannot continue to Transform Lives if we are not commercially sustainable and, equally, we are unlikely to be able to Transform Lives in a meaningful, lasting manner if we focus solely on profits and dividends.
The firm has heightened its ethics watch and as part of the drive for responsible business, at least 81 per cent, or 269 of its suppliers have signed up to the Code of Ethics for Business in Kenya.
“This minimizes the risk of corruption and fraud, which, in turn, bolsters the reputation and trust we enjoy, strengthens employee morale and engagement, and improves stakeholder sentiment and interest,” Collymore added.
As a result of robust our anti-corruption corrective measures the firm reports that it has let go of 18 employees in the 12 months to March 2016, an improvement from 58 sacked in similar circumstances in 2015.
In the year under review, Safaricom worked hard to minimize the negative impact of the network on the environment collecting 430 tonnes of electronic-waste, equivalent to 78 adult African elephants.
Mr Collymore said that businesses do not exist in isolation and that the True Value report is an indication that Safaricom is intrinsically tied to the Kenyan economy.
“We do not believe that the impact is restricted to Safaricom, each and every Kenyan company leaves a similar footprint on the Kenyan economy,” he said. “This is why is it critical for all businesses operating in Kenya to examine how they can continue to grow sustainably.”