Banking, Business

Safaricom becomes first Kenyan company to hit the Sh 1 trillion valuation milestone

Safaricom on Friday became the first company to hit the Sh. 1 trillion market capitalization in Kenya. This is after its stock on the Nairobi Securities Exchange climbed to hit an all time high of Sh. 25.

The stock closed at Sh. 24.50 a piece. This gave it a market capitalisation of Sh.981.6 billion — which is 42.9 per cent of the total value of all the 63 firms listed on the NSE.

Safaricom shareholders have enjoyed a Sh214 billion gain in their wealth this year after the telco’s share hit a new all-time high of Sh25 on Friday.

Safaricom-CEO-Bob-Collymore-during-the-announcement-of-HY17-results
Safaricom CEO, Bob Collymore 

It has gained 28 per cent this year on the back of increased demand by foreign investors eyeing dividends. It opened the year at a price of Sh19.25.

The stock closed Friday at an average price of Sh24.50, earning it a market capitalisation of Sh981.6 billion — which is 42.9 per cent of the total value of all the 63 firms listed on the NSE.

At this level of capitalisation, the company is now valued at nearly a seventh of the country’s GDP of Sh7.1 trillion.

Since the beginning of March 2017, Safaricom’s shares have risen 45 percent amid strong foreign investor buying and a favorable market outlook.

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