Safaricom has made over Kshs 100 billion in profit before tax for the year ended march 2022. This returns signify the monopoly that safaricom has in the country. The performance statement that was realised by the company indicated that Mpesa contributed over 49% of the company’s profits.
This is the first time that safaricom is indicating the share of profits that Mpesa has contributed. In the past years Safaricom released on the revenue contributions. The revenue contributions for this year stood at 36%. A comparison in this reveals that Mpesa contributed more to the profits than the revenues.
The surge in profits for the mobile money sector has seen a surge in growth from the covid era. The maximum amount that a mobile wallet can hold has been increased to 300,000 from 150,000.
During the height of Covid 19, the government advised Kenyans to avoid the use of cash and instead opt for mobile money. This directive has seen started bearing fruits as the number of cashless payments have increased.
Safaricom’s Lipa na Mpesa platform has also seen a surge in the number of outlets that have registered. The continued use of mobile money will very instrument in helping the company achieve its set quotas. Early this Month Safaricom in partnership with Equity launched a platform dubbed Faraja.
Faraja seeks to offer safaricom subscribers an interest free credit to help them purchase items from select stores. Such products are expected to push safaricom to the valuation in the trillions. In a bid to attract even more users Safaricom has extended the services that Mpesa offers to its clients. This includes Fuliza, Savings Platform, Direct bank borrowing, Lipa na Mpesa payment across all networks among others.