This Safaricom result is tragic. Africans are brainwashed. No wonder we are a 3rd World. Kenyans are celebrating and congratulating Ndegwa and Safaricom. But this one of the causes of our Poverty.
Look at 2nd Column on the right. This is the Company result for Kenya. Group result includes Ethiopia.
So for Kenya:
Gross Revenue Shs 410 Billion.
Net Profit Shs 118 Billion??? This is 29% Net Margin.
Most Companies return 10%! And worse this merely for Service!!! If it was Industry, them at least some benefit to the Country.
Many London School Economists keep singing about Foreign Direct Investments. Do they really understand it? What have KBL, Safaricom, BAT added to Kenya in the decades they have been here??
Have their ex employees set up rival Companies??
Those companies in most Countries are Local Industries.
Most of these ' Employees' and Economists who marvel at millions will be proud not knowing we are exporting Wealth and Jobs.
They are trading in KShs and repatriating US$.
Probably Ndegwa, David Ndii, Julians Omboko are celebrating.
Deeper analysis is even more troubling.
Dividend is KES 2 per share
Earnings per share is KES 2.95
Net profit after tax 118b
Dividends are (2 divided by 2.95 ) or 67% dividends declared of profit after tax. They retain very little in the Company !!
67% of Net profit 118b = KES 80 billion is dividends.
I think Vodacom own 60% so they will get 60% x 80b = KES 48 Billion or GBP 280 million.
Now take their income of KES 410 billion.
Dividend to the UK - KES 48 billion
That percentage is 11.7%. This percentage of income that SF earns goes as dividends to the UK
Imagine you send money to someone and it costs KES 130 (assume 30 is excise, VAT etc) so SF net revenue is KES 100.
Out of that KES 100 a total of 11% of this amount is going to King Charles or KES 11.
We cannot be working so hard to plant Tea, etcvto generate FOREX to pay King Charles 11% Safaricom Revenues
Add the Billions at least 11B outsourced services eg paying rent to American Tower Company for using Towers.
Towers which were bought from Telkom Kenya for a song. Simple things that Kenyans should be doing.
That is at least another Shs 20B.
Then since Safaricom gets prepaid Airtime, which is like Advance Payment, they are so liquid they have never taken a Loan.
This liquidity is what is lent as Fuliza etc.
So Safaricom is mopping money from every village, slum etc
And yet Members of Parliament and other stooges can gloat that ' SAFARICOM IS A KENYAN COMPANY and should have a KENYAN identity when they have made a misadventure to Ethiopia ( Good for them).
The first column illustrates how Kenya is subsidizing that operation.
From a net Profit of Shs 118B, that Operation reduces that margin to Shs 73B.
Black Africans have to wake up and promote Local Industries like Mastermind Tobacco and Keroche Breweries.
Africans are just illiterate thinking they are very smart.
Colonialism of the Mind, Economy is still very much alive.
And they have ensured it continues with dangling of bait, hook, line and sinker something called 'Democracy, Capitalism and Freedom' !!
To work with Sir David Attenborough has been one of the great honours of my life. To celebrate his remarkable life on the occasion of his 100th birthday, here's his witness statement, from A Life On Our Planet. Thank you, Sir David, for everything you've done for the world.
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