Safaricom shows resilience inspite of Sh20 billion value loss
The loss in valuation is not as steep as had been expected
The slight loss in valuation has been attributed to the ongoing call for a boycott of the company's products by the opposition NASA coalition as payback for the company's alleged role in the loss of the party's presidential candidate ,Raila Odinga.
The loss in valuation is not as steep as expected with the hardest hit for the company coming from its M-Pesa product.
According to analysts, M-Pesa penetration which had been on a high before the election had reduced from 71 percent to 69 percent in the first half of 2017/18.
Earlier this week, the Luo Youth Caucus called on the leadership of NASA to reconsider their boycott strategy due to its impact on the economy within the Nyanza areas, considered a stronghold of NASA.
“The National Youth Council, in partnership with Uwezo Fund and the Youth Fund, mobilised resources in connection with Safaricom and gave many young people all over the country. It is so sad when leaders call for banning of these shops when the same youths are servicing loans acquired to set up the shops, without giving alternatives to the same the group said"
According to the Business Daily , Safaricom agents in opposition strongholds like Kisumu and Siaya have complained about persistent harassment at their booths.
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