Safaricom’s Share Incentive Plan Rewards Top Executives as Stock Value Surges

Safaricom’s rising share price has significantly boosted the value of its employee share incentive programme. Senior executives received free shares worth more than Sh707 million during the year ended March 2026.

According to the company’s latest annual report, Safaricom allocated 20.1 million shares to senior managers at no cost, up from 15.4 million shares issued the previous year. Chief Executive Officer Peter Ndegwa and Chief Finance Officer Dilip Pal were among the beneficiaries, with Ndegwa’s holdings rising to 12.09 million shares valued at Sh425.8 million, while Pal’s stake increased to 2.35 million shares worth Sh82.9 million.

The employee share trust purchased 6.8 million shares from the open market for Sh143.2 million during the year before transferring the 20.1 million shares, acquired at a historical cost of Sh350 million, to eligible employees. Combined with 13.3 million shares carried over from the previous year, the transfers left the trust with no remaining shares at the reporting date. Employees gain full ownership of the awarded shares after three years, after which they may retain or sell them.

The value of the awards has been lifted by Safaricom’s strong stock market performance, with the company’s share price rising from a low of Sh12.2 in October 2023 to Sh35.2. The rally has been supported by a 36.9 percent increase in net profit to Sh95.6 billion, improved performance from its Ethiopia business and a 66.6 percent increase in dividend payout to Sh2 per share.

Safaricom has since shifted its share incentive programme to focus on high-performing senior managers after discontinuing an earlier scheme that allowed a wider group of employees to buy shares at a fixed price. Because the shares are purchased from the open market rather than newly issued, the programme does not dilute existing shareholders’ ownership.