After a four-year period of anticipation, Safaricom has successfully obtained an insurance license from the Insurance Regulatory Authority (IRA).
This significant achievement enables the company to provide insurance services via M-PESA, its widely used mobile money platform.
CEO Peter Ndegwa disclosed this development during the company’s H1 2024 earnings presentation.
This initiative is a key component of Safaricom’s strategy to evolve M-PESA into a holistic financial service platform that caters to the digital requirements of its users.
Since 2020, Safaricom has been trialing insurance services while awaiting regulatory approval.
With more than 30 million active M-PESA users conducting transactions exceeding Ksh 1.5 trillion each month, Safaricom intends to capitalize on this extensive user base to broaden its offerings in unit trusts, savings, and insurance.
Safaricom has announced significant growth in both revenue and earnings, with group service revenue rising by 13.1% to Ksh 179.9 billion.
Additionally, Earnings Before Interest and Taxes (EBIT) increased by 1.8% to Sh42.2 billion for the six-month period ending September 30, 2024.
The robust performance of Safaricom can be primarily attributed to its operations in Kenya, where service revenue surged by 12.9% to Ksh 177.5 billion.
This growth propelled an 18% increase in EBIT to Ksh 79.2 billion and a 14.1% rise in net income to Ksh 47.5 billion.
Peter Ndegwa, the CEO of Safaricom, stated that these results reflect the diligent implementation of the company’s strategic initiatives and the value provided to customers through technological advancements.
The Kenyan segment of Safaricom Group remains a critical component of its overall success, while the company’s expansion into Ethiopia has also demonstrated remarkable growth, despite facing certain challenges.
In Ethiopia, Safaricom’s customer base expanded by 47.3%, reaching 6.1 million monthly active users, with data consumption per user averaging 6.6GB, which is notably higher than the 4.1GB recorded in Kenya.
