Safaricom has cut its dividend payout to shareholders to Ksh.0.55 per ordinary share.
This represents a 5.1% decrease from the previous payout on March 31, 2023.
The decision came after a board meeting on February 21, 2024, where the directors deliberated on the company’s financials.
The total dividend held, according to Safaricom amounts to Ksh.23.03 billion.
Safaricom Cautious Stance on Dividend
This adjustment reflects the company’s cautious stance in balancing shareholder returns with the need for operational and strategic investments.
Also Read:Â Safaricom Reports 2.1% Growth in Net Income, Reaching Ksh.34.2 Billion in H1 2023
Safaricom has been at the forefront of innovation in the telecommunications sector, and this move is seen as a step to preserve capital for future growth opportunities.
Shareholders will receive their dividends on or before March 31, 2024.
The announcement has led to varied reactions in the market.
Some investors have expressed concern over the reduced income, while others remain optimistic about the company’s long-term growth trajectory.
As Safaricom continues to navigate through the challenges and opportunities presented by the Kenyan and broader African markets, The dividend cut serves as a reminder of the delicate balance companies must maintain between rewarding investors and funding their expansion.
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