Safaricom has shifted its dividend payment method for shareholders, moving towards electronic platforms such as bank transfers and M-Pesa, and away from traditional cheques.
Shareholders were notified of this change and instructed to update their registration details accordingly. The company cited increased efficiency as the primary motivation behind this transition.
These changes come just before the scheduled payment of an interim dividend of KES 0.55 per share, expected around March 31, 2024. However, only shareholders registered by March 15, 2024, will be eligible for this dividend.
Safaricom had previously highlighted the inefficiency of cheque payments and advocated for the use of electronic fund transfer (EFT), real-time gross settlement (RTGS), or M-Pesa.
However, it’s important to note that this change may entail costs for investors utilizing these new services, unlike the zero dividend cheque clearing charge offered by most banks. For instance, M-Pesa incurs withdrawal charges of up to KES 108, while EFTs deduct KES 200 in many Kenyan banks.
As of March 2023, Safaricom had 534,719 shareholders and has urged those with Central Depository & Settlement Corporation (CDSC) accounts to update their details through their stockbrokers. This updated information will be used for the payment of outstanding dividends, if any, and for future dividend disbursements.
