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| Safaricom CEO Peter Ndegwa |
After four years, Safaricom, the largest telco in Kenya, has finally obtained an insurance license from the Insurance Regulatory Authority (IRA). Safaricom CEO Peter Ndegwa said the telco will offer insurance solutions to M-Pesa customers. What is Safaricom’s new product? Safaricom CEO Peter Ndegwa announced that the firm will now provide insurance services to its M-Pesa consumers with a new product, Bima.
“Innovation remains critical. We have revamped our wealth proposition and have now received an insurance intermediary license from the Insurance Regulatory Authority,” Ndegwa stated during the release of the company’s 2025 half-year results. Ndegwa said Bima will be rolled out in the second half of the financial year. “This will help us accelerate our rollout of insurance solutions, we expect to rollout propositions in both wealth and savings but also insurance in the second half of this financial year,” he explained.
The new offering aligns with the telco’s plan to expand M-Pesa into a financial services company that caters to its clients’ “digital needs.” Safaricom has been testing insurance products since 2020 while awaiting approval from the regulator. What was Safaricom’s profit? Safaricom’s profit in the six months to September 2024 declined by 17% to KSh 28.1 billion after the Ethiopian birr depreciated against the United States (US) dollar.
According to the telco’s half-year results, it took a hit of KSh 17.5 billion during the period under review. Between June and September 2024, the Ethiopian birr weakened by 106.3% against the US dollar, impacting the company’s capex creditors, lease agreements, and foreign-denominated borrowings. Ndegwa said the Kenyan unit compensated for the company’s loss in Ethiopia.
What was Safaricom’s profit in Kenya? Safaricom’s Kenyan division reported a net profit of KSh 47.5 billion, which represents an increase of 14.1%. Safaricom CEO Peter Ndegwa said the telco will continue growing its core business while expanding into new services. The leading telecommunications firm created over one million jobs for Kenyans last year.
by Japhet Ruto