Safaricom announced its FY21 results, reporting a 6.8% decrease in profit after tax from KES 73.66Bn to KES 68.68 Bn. This was below our expectations. The uncertainty during the Covid-19 pandemic disrupted businesses and reduced economic activity (especially at the on-set of the pandemic) thus the Telco’s earnings were lower in 1H21 but recovered in 2H21. The reduced profitability was mainly on account of lower service revenue which was negatively affected by reduced transaction cost on M-PESA services.
