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Safaricom records 15% growth in customer base

Kenya , 05 Nov 2015

Safaricom records 15% growth in customer base

Telecommunications services provider Safaricom has announced that 3.25 million new customers have been registered on its network, representing 15% growth.

Speaking at the announcement of the half year results (2015/2016 financial year) in Nairobi, CEO Bob Collymore said that the growth was due to their assertiveness to implant their service in the region.

"We continue to deliver our strategy by putting our customers first, providing relevant products and enhancing our operational excellence. During the period under review we restructured our sales and operations teams into regions enabling us to take our service closer to the customer and enhance their experience," he said.

The company's service revenue increased by 12.3%, buoyed by growth, to clock Kshs 84.9 billion. Voice service accounts for 53.2% equivalent to 45.2 billion, while non-voice gained 39.7 billion to capture 24.4%.

M-Pesa continued to perform well in the market and recorded an increase of 22.7% in the number of active monthly (30-day) users. The service is reported to have 15.7 million users, generating Kshs 19 billion for the company.

Lipa Na M-Pesa, Safaricom merchant service for M-Pesa, has 36,000 merchants and, according to Safaricom, means that more businesses are taking the MPesa payment option.

"These merchants received payments worth Kshs 15 billion for goods and services in the month of September 2015," the company reported.

Safaricom now commands a market share of 67%. The smarpthone segment also recorded 4.1 million users on Safaricom's platform.

Collymore said that they are also introducing cheap smartphones to capture more of the rural and regional customers as they aggressively add to their business.

On the data side, Safaricom has upped its fibre business to try and capture the Fibre to the Home (FTTH) market.

"We hope to sign up 14,000 homes by the end of this year to our fibre network," Collymore said.

He declined to comment on the progress of the BigBox, the company's flagship television and fixed data product for the home.

Safaricom now has 13 million data subscribers representing a 25% increase from the last session's results. The company has now connected 1000 buildings to its fibre network and has enlarged their 4G coverage to 14 major towns and cities in Kenya.

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