SAFARICOM THE CORPORATE GIANT

Safaricom PLC has officially become the first company in East and Central Africa to surpass a market valuation of $7 billion (approximately Ksh922 billion), cementing its position as a regional corporate giant.

The telecommunications giant achieved this milestone on Tuesday, June 10, 2025, after its share price surged to Ksh23.00 during the day’s trading session—the highest level since March 7, 2023. The stock later closed at Ksh22.60, representing a 6.34% gain in a single day and adding nearly Ksh60 billion in paper value.

This development now places Safaricom CEO Peter Ndegwa at the helm of the most valuable company in East and Central Africa.

The rally had a ripple effect on the Nairobi Securities Exchange (NSE). The NSE All-Share Index rose 2.82% to close above 140 points—marking its best one-day gain since March 2024 and reaching levels last seen in September 2022.

According to the Central Bank of Kenya's exchange rate on June 10, Safaricom’s valuation translates to $7.13 billion.

The impressive growth has been fueled by several key factors. Safaricom’s expansion into Ethiopia continues to gain traction, while its flagship mobile money platform, M-Pesa, remains a driver of innovation and revenue. Since October 2023, the company's share value has surged by 64%, including a year-to-date increase of more than 32.5%.

In a related development, the Central Depository and Settlement Corporation (CDSC) confirmed the successful conversion of 16 billion Safaricom shares from physical certificates to electronic form. The transition, led by major shareholder Vodafone Limited, increased the total number of electronic Safaricom shares in the Central Depository System to 40 billion—representing nearly 100% of the firm’s issued shares. The move aims to enhance efficiency, transparency, and investor confidence in Kenya’s capital markets.

Meanwhile, the National Treasury has revealed plans to sell part of its 35% stake in Safaricom, valued at around Ksh280.5 billion as of mid-May. Treasury Cabinet Secretary John Mbadi stated that the government hopes to raise Ksh149 billion from the privatization effort by June 2026.

Mbadi noted that other state enterprises remain unattractive to investors due to years of financial losses, mismanagement, or poor corporate structures. Currently, the Kenyan government and South Africa’s Vodacom each hold 35% of Safaricom, Vodafone holds 5%, and the remaining 25% is in public hands through free float shares.

With consistent growth, innovation, and regional expansion, Safaricom's momentum suggests the company is only getting started, setting the pace not just for Kenya, but for Africa’s evolving digital economy.