Abstract
As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans throughout the country, with products and services designed to empower people. Safaricom enjoys a 64.5% market share, 77.5% of voice traffic, and 72.6% of mobile data/internet subscribers. Safaricom facilitates community involvement through various organizations such as the M-PESA foundation, a charitable trust that seeks to advocate programs that improve health, environmental conservation, and education for the financial and social benefit of Kenyans, and the Safaricom Foundation, whose mission is to partner with the community to tackle environmental, economic, and social issues to bring about enduring and progressive change. Safaricom also serves society by sponsoring athletic events through Safaricom Sevens, the biggest rugby event in Kenya, and by sponsoring the music festival Niko na Safaricom Live, an event featuring local music talent and fostering national pride.
Safaricom Ltd. was formed as a private limited liability company (LLC) in 1997 and became a publically traded company in 2002. The original company was 60% owned by the Government of Kenya. In 2000, Vodafone acquired a large stake in the company through Vodafone Kenya Ltd, a locally owned subsidiary. In 2008, the Government of Kenya sold enough shares to the public to lose its majority interest. There are a total of 40 billion shares outstanding, which are owned by 698,863 different investors as of March 31, 2013. Of those shareholders, 61.2% own less than 1,000 shares. The top two shareholders, Vodafone Kenya Limited and Permanent Secretary – The Treasury, now own just over 75% of the company. As of October 18, 2013, 52 institutional investors owned only 2.3 million shares, or 5.86% of the remaining shares.
Safaricom has grown through a variety of strategies, including acquisitions. In 2008, Safaricom purchased a majority stake in One Communications Ltd. in order to gain access to its data services. The company has also made several other small acquisitions to enhance its services and market share.
Document Type
Case Study
Publication Date
2013
Recommended Citation
Harrison, Jeffrey S., Laura Beauchesne, Nick Dorion, and Nathaniel Griggs. Safaricom: Innovative Telecom Solutions to Empower Kenyans. Case Study. University of Richmond: Robins School of Business, 2013.
Comments
Copyright © 2013 Jeffrey S. Harrison. This case study first appeared in the Robins Case Network, 2013.
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