Kenyan telecom operator Safaricom to pay special dividend
27 July 2016, 14:58
Nairobi (Reuters) - Kenyan telecom operator Safaricom will pay a special dividend of 0.68 shillings ($0.0067) per share, it said on Tuesday.
The firm, which is 40 percent owned by Britain's Vodafone , has reported consistent profit growth in recent years, leading to a build-up of its cash reserves.
"There is room for this one-off special dividend of 27.5 billion shillings due to the cash position of the company, and the significant retained earnings of 82 billion shillings," said Safaricom CEO Bob Collymore in a statement.
Higher earnings at Safaricom have been driven by growth in Internet and its M-Pesa mobile phone-based payments business. Revenue from calls also grew in the year ending in March.
Safaricom's shares rose more than 5 percent to 19.10 shillings after news of the special dividend.
The firm said the dividend would be paid out on Dec. 1 to shareholders on the books at the close of trading on Sept. 2.