Safaricom is Kenya’s largest telecommunications company, commanding a significant share of the mobile, data, and mobile money markets. The company’s CEO is among the highest-paid executives in the country, reflecting the scale of operations, responsibility, and corporate performance expectations. Understanding the CEO’s salary helps provide context for executive pay, corporate governance, and leadership incentives in Kenya.
Annual Compensation and Monthly Breakdown
For the financial year ending March 2025, the Safaricom CEO received a total remuneration package of approximately KES 294.2 million. This package includes base salary, performance bonuses, share awards, and non-cash benefits such as housing and vehicles. When divided over 12 months, this translates to a monthly equivalent of around KES 24.5 million.
It is important to note that this figure represents an average monthly equivalent. The actual cash flow may differ because bonuses and share awards are usually paid once a year or according to a vesting schedule.
Components of the CEO’s Package
The CEO’s total pay package is made up of several components:
- Base Salary: This is the fixed monthly pay for leading the company and overseeing operations. In 2025, the base salary was around KES 98.7 million annually.
- Performance Bonus: This reward is linked to company performance, including profitability, growth in mobile money and data services, and overall strategic targets. The annual performance bonus was about KES 116.7 million.
- Non-Cash Benefits: These include perks such as housing, vehicles, and other executive benefits valued at KES 33.5 million annually.
- Employee Share Award Plan Payout: This long-term incentive aligns the CEO’s interests with shareholder value and was approximately KES 45.3 million for the year.
These components together make up the total annual package and explain why the monthly equivalent is higher than the base salary alone.
Factors Influencing Executive Pay
Several factors contribute to the size of the Safaricom CEO’s compensation:
- Company Performance: A large portion of the pay is performance-linked, ensuring the CEO is incentivized to deliver strong financial results and growth.
- Market Benchmarking: Compensation is designed to attract and retain top talent in the highly competitive telecommunications sector.
- Responsibility and Risk: The CEO oversees thousands of employees, multi-billion-shilling operations, and critical national infrastructure, which justifies higher pay.
- Long-Term Incentives: Share-based awards encourage strategic decision-making that increases shareholder value over time.
Comparison with Other Executives
The Safaricom CEO’s package is among the highest in Kenya and exceeds typical executive compensation in other publicly listed companies. The monthly equivalent of KES 24.5 million far surpasses salaries for senior executives in most sectors, reflecting the company’s profitability and market leadership.
This comparison also illustrates the significant gap between corporate top earners and average Kenyan incomes, which shapes public debate on executive pay and economic equity.
Understanding Monthly Equivalent
While the reported monthly figure is about KES 24.5 million, it is crucial to recognize:
- Performance bonuses and share payouts are not received monthly but annually or in tranches.
- Non-cash benefits may not be liquid cash, meaning the actual take-home salary differs from the reported total.
- Taxes and deductions reduce the net amount the CEO receives.
The monthly equivalent is useful for illustration but does not represent regular cash flow.
Implications of High Executive Pay
The CEO’s compensation reflects both reward and incentive for leading a major corporation. High pay aligns the CEO’s interests with company success but also draws attention due to the disparity with average Kenyan earnings. Investors, analysts, and the public often scrutinize executive pay to ensure it is justified by performance and value creation.
The Safaricom CEO earns a total annual package of about KES 294.2 million, translating to a monthly average of approximately KES 24.5 million. This includes base salary, performance bonuses, share awards, and non-cash benefits. The structure of this compensation package ensures alignment with company performance, long-term strategic objectives, and market competitiveness. Understanding the breakdown helps provide perspective on executive pay and corporate governance in Kenya.
