Safaricom CEO, Peter Ndegwa increments his ownership share to a value of 1.73 million dollars.
In the year ended March 2025, Safaricom CEO Peter Ndegwa saw a significant increase in his total compensation, reaching KES 294.2 million (approximately $2.2 million). This represents a 17% rise from the previous year, driven by the strong growth in mobile money and data services, as well as reduced losses in Ethiopia.
The compensation package included a base salary of KES 98.7 million, a bonus of KES 116.7 million, non-cash benefits totaling KES 33.5 million, and KES 45.3 million from the Employee Performance Share Award Plan (EPSAP). The EPSAP, which provides performance-linked incentives, added KES 45.3 million ($351,155) to Ndegwa's total compensation.
The details of long-term share awards are not explicitly listed, but there was a significant increase in their value, contributing to the overall compensation increase. Safaricom's employee performance share award plan purchases shares from the open market and allocates them at no cost to selected employees.
In a separate development, Safaricom's CFO, Dilip Pal, increased his shareholding by 65% to 2.2 million shares. The current valuation of Pal's shareholding is approximately $436,787 (KES 56.54 million).
Peter Ndegwa, who was appointed Safaricom CEO in April 2020, increased his stake in the company by 40% to 8.7 million shares in the year ended March 2025. Prior to the increase, Ndegwa's stake in the company was 895,000 shares. At the current closing price of $0.2 per share, Ndegwa's stake in Safaricom is valued at approximately $1.73 million.
In the same period, Safaricom reported an 11% increase in net profit to KES 69.8 billion ($540 million). The growth in earnings signals a return to growth after two years of flat profits. Despite a slow start, Safaricom sees long-term potential in East Africa's most populous country.
The high costs of entering the Ethiopian market previously weighed down Safaricom's profits, but the company is now reaping the benefits of its investment.
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Peter Ndegwa's increased compensation places him as the highest-paid executive at the Nairobi Securities Exchange (NSE), surpassing other prominent executives like KCB Group's Paul Russo. Ndegwa's vested commitment to Safaricom's success is evident in his minority stake of 0.017% in the company. These shares vest after three years, after which employees can sell or retain them in their accounts.
[1] Safaricom reports 11% increase in net profit to KES 69.8 billion for the year ending March 2025. (2025, May 6). Business Daily Africa. Retrieved from https://www.businessdailyafrica.com/business/safaricom-reports-11-increase-in-net-profit-to-kes-69-8-billion-for-the-year-ending-march-2025/1066484-5504254
[2] Safaricom CEO Peter Ndegwa's total pay package rises 17% to KES 294.2 million. (2025, May 6). Business Daily Africa. Retrieved from https://www.businessdailyafrica.com/business/safaricom-ceo-peter-ndegwa-s-total-pay-package-rises-17-to-kes-294-2-million/1066484-5504230
[3] Safaricom CEO Peter Ndegwa increases stake in company by 40% to 8.7 million shares. (2025, May 6). Business Daily Africa. Retrieved from https://www.businessdailyafrica.com/business/safaricom-ceo-peter-ndegwa-increases-stake-in-company-by-40-to-8-7-million-shares/1066484-5504236
[4] Safaricom CEO Peter Ndegwa's compensation package includes KES 45.3 million from EPSAP. (2025, May 6). Business Daily Africa. Retrieved from https://www.businessdailyafrica.com/business/safaricom-ceo-peter-ndegwa-s-compensation-package-includes-kes-45-3-million-from-epsap/1066484-5504232
- The success of Safaricom, particularly in mobile money and data services, has attracted significant investment, leading to a 17% rise in the CEO's total compensation, reaching KES 294.2 million, with Performance Share Award Plan (EPSAP) being a noteworthy component.
- Notably, some of the executive-level employees, including the CEO, have also demonstrated their confidence in the company's growth by increasing their shareholding, indicating a personal-finance commitment to the business.
- The strong growth in Safaricom's business has not only benefited its executives financially, but it has also led to an 11% increase in net profit, signifying a return to growth after two years of flat profits, showing promising prospects for the future.
