Safaricom shareholders approved two new subsidiaries on Friday, one devoted to seed-stage start-ups and the other focused on growth-stage start-ups.

The news was announced following Safaricom's 15th Annual General Meeting.

According to Safaricom, the formation of a company to invest in seed-stage entrepreneurs, builds on the Spark Fund—a Safaricom investment entity, controlled by a board of trustees, to support seed-stage start-ups throughout Kenya.

Meanwhile, a new private limited liability company will be tasked with investing in more mature, strategically aligned entities that will help accelerate Safaricom's aim to become a tech powerhouse.

“We are committed to empowering the tech ecosystem in Kenya and beyond, and this strategic move will enable us to broaden our investments, embracing both seed-stage and growth-stage start-ups. Incorporating these subsidiaries is pivotal to realising Safaricom's purpose to become a purpose-led technology company,” said Safaricom CEO Peter Ndegwa.

He added: “We will be looking to invest in and support early-stage companies especially in emerging technologies such as analytics, machine learning, AI, and the Internet of Things. We will be launching the call for applications in the coming weeks.”

Adil Khawaja, board chairman, thanked shareholders for their support in establishing the new subsidiaries.