Safaricom Should be Investigated

Mpesa moved close to 9 billion dollars in the first 3 months of 2017. Extrapolate that to FY, an estimated 36 billion USD. Safaricom Mpesa charges about 5% of the value. Assuming that 5% of the 36 billion dollars was pocketed/will be pocketed by Safaricom, that is 180 billion gross profit from MPESA alone. Safaricom has other income channels e.g data, retailing phones, voice, ttext, contracts with gava for CCTV etc. How come they declared a profit before tax of just 70 billion shillings???Something does not add up. Safaricom makes more than 200 billion which begs the question where the rest of the money I.e 130billion goes? Undereporting? Fraud?

Ask any Safcom auditor. Have you considered all the entries in the GL; the trial balance?
Sounds like a DJ who was counting the crates sold by his employer, thinking that the employer was making a lot of money but the poor guy did not consider simple things like operating expenses, inventory costs, and creditors.

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This guy has a point. If the GROSS profit for MPESA alone is 180 billion, how comes the total profit before tax is 70 billion?? Remember that voice is still the primary revenue earner for Safaricom and he has not counted income from all other channels. I also smell a big rat.

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Salaries, advertising, retail space. . .

If mpesa only for a year is close to a trillion gross using his figures, their running costs must be over 90% to even claim such a low profit. The guy has a point.

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Would that add up to 110B?

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Something smells fishy. And i hear the way deals are made at safcom…acha tu. Chaps would kill you over contracts

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Ruto achunguzwe

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Safaricom does not get 5% on money transacted. For example to send 66000 will cost KES 220. Thats 0.0033%. Moving the lowest denominators (KES 500-3000) the cost is KES 27 to send and 30 to withdraw. Thats 0.054% for KES 500. So it does make sense that Kenya’s transacted that huge amount and the revenues Safaricom got will be “small” so to speak. In any case would you agree to be charged 5% of the money you transact anywhere?

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pesalink na Mvisa zimetumwa kumaliza hawa watu…give it a few yrs and watch their mpesa cash cow become a dog

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Pia Orezo yuko ndani ya hiyo. Doesn’t that diaspora money transfer company go through hiyo bank yake.

Hii post ndio unajua wale walisomea Hesabu kwa dirisha ukianza na mwenye post

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Wewe hesabu ulisomea kwa dirisha. 220 bob for sending 66000 is 0.33% not 0.0033% as you claim. I’ve read beyond that but I am certain your calculation is flawed.

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Good discussion… Wenye walisoma share your views.

Where did you get this 5% from?

Sadly, the most chargeable ratios are during withdrawals. Deposits are free…and at no point do they charge anywhere near 5%. The average charge for a full transaction (sending and withdrawing) maybe a cumulative 1.5% which is shared by the withdrawing agent and government (10% of all fees). Paybill does not charge more than 2%. BuyGoods charge about 0.5%.

Profit before tax has taken into account expenses such as payroll, marketing etc, their balance sheet seems legit to me.

You guys are ignoring the fact that Safaricom has MULTIPLE revenue streams. Mpesa is just one of them and not even the main one, yet 36billion USD is expected to be transacted this year. Halafu company iannounce profit ya 80billion. They are obviously bullshitting us and the government

your maths is flawed that’s why we are ignoring it.

36 billion USD is total transactions. Meaning deposit, withdrawal and lipa na mpesa.
Deposit is free. Assuming that’s half, we’re left with 18USD billion. That’s Sh1.8 trillion.
From the transaction charges, the average is not even 2% of the value. Now you are working with KSh36 billion as revenue. Na haujatoka agents’ share plus tax. Ata sijui wanakula nini. Perhaps the Lipa na Mpesa transactions pay them better.

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