Safaricom's CEO claims top salary in NSE, pocketing approximately $2.2 million.
## Executive Compensation at Safaricom: A Closer Look
In the financial year ending March 2025, Peter Ndegwa, the CEO of Safaricom, earned a total compensation of KES 294.2 million ($2.2 million), marking a 17% increase from the previous year [2][3]. This significant figure places Ndegwa among the highest-paid CEOs in Kenya.
The CEO's compensation package consists of various components, including a base salary of KES 98.7 million ($765,100), a performance-based bonus of KES 116.7 million ($904,600), and non-cash benefits totalling KES 33.5 million ($259,187) [1]. Additionally, Ndegwa received KES 45.3 million ($351,155) through Safaricom's Employee Performance Share Award Plan (EPSAP) [1].
Safaricom's non-executive directors also received substantial remuneration, accumulating a combined total of KES 84.7 million ($655,319) [1]. The company's Chief Financial Officer, Dilip Pal, earned KES 132 million ($986,000) [6].
## Safaricom's Financial Performance and Executive Pay during Economic Downturns
While specific details about how Safaricom's executive pay adjusts during economic downturns are not provided in the recent reports, it's worth noting that Safaricom continues to perform well financially, with a net profit increase of 11% to KES 69.8 billion ($540 million) [5]. This growth was driven by strong performance in mobile money and mobile data [7].
In comparison, executive pay in Kenya generally reflects company performance and market conditions. During economic downturns, companies may adjust compensation packages to align with reduced revenue or profitability [8]. However, Safaricom's financial stability likely allows it to maintain higher executive pay compared to companies more vulnerable to economic fluctuations.
## Comparison with Other Companies
Comparing executive pay at Safaricom with other companies in Kenya during economic downturns requires a closer look at how executive compensation is structured and how it changes during economic challenges. While specific data on how other Kenyan companies adjust executive pay during downturns is not provided, it's common for companies to reduce or freeze executive compensation to maintain operational stability and investor confidence.
Safaricom's Chairman, Adil Khawaja, received KES 24.5 million ($189,918) in compensation [9]. In comparison, the CEO of KCB Group, Paul Russo, earned KES 250.2 million ($1.9 million) in the same period, a 40.8% rise [10].
## Conclusion
Safaricom's executive pay, particularly the CEO's compensation package, is among the highest in Kenya, reflecting the company's strong financial position even during economic challenges. Other companies may face more pressure to adjust executive compensation downward during downturns, depending on their financial resilience and market conditions. However, specific comparisons would require detailed financial reports from other prominent Kenyan companies.
Safaricom continues to dominate Kenya's telecoms and digital payments sectors, remaining the most profitable listed company in East and Central Africa. The company remains bullish on its long-term prospects in East Africa's most populous market. With its continued financial success, Safaricom CEO Peter Ndegwa holds the title of the highest-paid CEO at the Nairobi Securities Exchange (NSE).
In the realm of Kenyan businesses leveraging technology for mobile payments and finance, Safaricom CEO Peter Ndegwa's compensation package includes both base salary and performance-based bonuses in light of the company's strong business performance. During economic downturns, Safaricom's financial stability allows for maintenance of higher executive pay levels compared to other Kenyan companies that might adjust compensation due to reduced revenue or profitability.
