Safaricom Boss Tops NSE Pay Charts with $2.2 Million

Peter Ndegwa, CEO of Safaricom, has become the highest-paid executive on the Nairobi Securities Exchange (NSE), pocketing a staggering KES 294.2 million ($2.2 million) in total compensation for the year ending March 2025. The 17% increase from the previous year reflects Safaricom’s return to profitability after two turbulent years.

Ndegwa’s earnings include KES 98.7 million ($765,100) in salary and a KES 116.7 million ($904,600) performance bonus. He also received KES 33.5 million ($259,187) in non-cash benefits and KES 45.3 million ($351,155) through the company’s Employee Performance Share Award Plan (EPSAP). Though specific benefits were not disclosed, non-cash perks at this level often cover housing, school fees, and executive lifestyle allowances.

While the numbers are striking, they come at a time when Kenyan households and many businesses are tightening their belts due to inflation, static wages, and widespread hiring freezes.

Executive Pay Rises as Profits Return

Safaricom’s generous executive compensation coincides with a rebound in net profit, which rose 11% to KES 69.8 billion ($540 million) for the year. This growth was fuelled by stronger mobile data performance, M-Pesa transactions, and reduced losses from its expansion into Ethiopia.

Still, the sharp contrast between soaring executive pay and Kenya’s broader economic climate has not gone unnoticed. Across industries, firms are freezing budgets and cutting operational costs. Yet, Safaricom has moved in the opposite direction—boosting pay not just for Ndegwa but across its leadership team.

Chief Financial Officer Dilip Pal earned KES 132 million ($986,000)—a 16% increase over last year. Together, the CEO and CFO walked away with KES 426.7 million ($3.2 million), compared to KES 366.1 million ($2.8 million) the year before.

Board Chairman Adil Khawaja was paid KES 24.5 million ($189,918), and non-executive directors received a combined KES 84.7 million ($655,319). Total director compensation climbed 10% to KES 511.4 million ($3.8 million).

Ethiopia Bets, Kenyan Reality

Safaricom’s financial comeback follows a rocky expansion into Ethiopia, East Africa’s most populous country. The venture initially weighed heavily on its balance sheet. However, improved numbers suggest that the telco’s long-term strategy is finally paying off.

Still, there is a tension between investor optimism and public perception. The telecom giant may be East and Central Africa’s most profitable listed firm, but lavish boardroom spending during economic strain risks alienating stakeholders beyond shareholders.

“Is this growth inclusive or just rewarding the top?” one might ask. Only time will tell if Safaricom’s bold bets and boardroom bonuses lead to sustainable gains for both the business and the Kenyan economy.