An extra coin for Safaricom shareholders

Safaricom shareholders will have more to smile about after the listed teleco announced a special dividend of Sh0.68 cents per share. This will see the firm spend Sh27.5 billion in a one off bonus dividend payout to shareholders.

The special divided is in addition to the Sh0.76 Safaricom’s board announced in May after the firm announced a full year profit of Sh38 billion.

According to Safaricom Chief Executive Officer Bob Collymore, the firm’s retained earnings position had increased significantly warranting the bonus divided for shareholders.

“There is room for this one-off special dividend of Sh27.5 billion due to the cash position of the company, and the significant retained earnings of Sh82 billion,” Mr Collymore said in a statement.

The special dividend will lift Safaricom’s total dividend payout to Sh57.9 billion, making it the highest in Kenyan corporate history.

The behemoth operator has over the last decade preferred to retain most of its earnings to fund capital expenditure to grow its network. Safaricom boasts of 25.2 million customers with earnings in 2016 growing by 14 percent to Sh186 billion shillings.

The special interim dividend will be paid out on or prior to December 1 2016.