A Kenyan investor, Elias Wambua, made a bold move in November 2024 by investing Sh1.5 million in Safaricom shares — acquiring approximately 104,000 shares at an average price of Sh14.35 each.
Wambua says the decision was made shortly after Safaricom released its half-year financial results for 2024.
“After analyzing the numbers, I anticipated strong growth in the months ahead and decided to act quickly,” he told BiznaKenya.
His strategy was driven by the belief that the financial outlook indicated a favorable opportunity for value appreciation.
Safaricom’s financial performance backed up that confidence. For the six months ending in 2024, the company reported a net profit of Sh28.1 billion, driven largely by gains in its mobile money platform, M-Pesa, which recorded a revenue jump from Sh73.7 billion to Sh77.2 billion.
In addition, the company saw a 12.9% rise in service revenues, reaching Sh177.5 billion, while earnings from connectivity services — covering voice, mobile data, and fixed internet — increased from Sh90.8 billion to Sh91.3 billion.
Wambua’s calculated investment underscores a growing trend among local investors who are capitalizing on market movements tied to company performance reports — blending timing, insight, and strategy for high-return opportunities.
Wambua was not alone. Sofia Mwakale, a 36-year-old investor, also moved quickly — putting Sh600,000 into Safaricom stock at Sh14.20 per share, acquiring about 42,250 shares.
Fast forward seven months, and both investors found themselves riding a bullish wave on the Nairobi Securities Exchange.
On June 12, Wambua sold his shares at Sh24.90, realizing a profit of Sh1.08 million and growing his portfolio to Sh2.58 million.
Speaking on the performance, Safaricom CEO Peter Ndegwa remarked, “Our business fundamentals remain strong, and we’re proud of the value we’ve continued to deliver to our customers. There’s clear momentum in the Kenyan market.”
Safaricom became the first firm in East and Central Africa to surpass Sh387.7 billion (approximately $3 billion) in annual revenue. Net profit for the year rose by 10.8% to Sh69.8 billion.
In just five years under the leadership of Ndegwa, Safaricom has transformed into the region’s largest company by both market capitalization and profitability.
“We have delivered excellent group performance with double digit growth on both top and bottom line. This strong set of results reflect the dedication of our teams, the loyalty of our customers, and the strength of our strategy,” said Ndegwa.
Ethiopia contributed almost 10 per cent to the group’s revenue, with management noting that the business had moved past the peak investment phase and expected to turn to profitability by financial year 2027.
Safaricom Ethiopia more than doubled its subscriber base, reaching 8.8 million customers, supported by the rollout of over 3,141 operational sites across the country.
Notably, 2.8 million of these subscribers are actively using M-PESA, with total transactions surpassing $159.4 million (Sh20.6 billion) during the reporting period.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
