Companies
Safaricom expat salaries increase to Sh4.5 billion
Monday August 07 2023
Safaricom PLC Chief Executive Officer (CEO), Peter Ndegwa at a past event. FILE PHOTO | POOL
Safaricom’s spending on expatriate staff salaries rose 271.1 percent to Sh4.59 billion in the year ended March, signalling a rise in the number of senior employees drawn from the network of its ultimate parent firm Vodafone Group Plc.
The Nairobi Securities Exchange-listed firm had spent Sh1.23 billion on the expatriates, referred to as secondees, in the prior year.
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The compensation of this category of staff is disclosed in the company’s latest annual report. The expatriates’ payroll costs are centrally managed by Vodafone and then billed to Safaricom.
The expatriates comprise Safaricom staff sent to its sister companies in the Vodafone network as well as employees sent to the Kenyan telco from the parent firm.
“The company has employees who are seconded from Vodafone affiliate companies. The payroll cost for the secondees is managed by Vodafone Group Services Limited and recharged (invoiced) to the company for payment on a monthly basis,” Safaricom says in the report.
“The company seconds its staff to other Vodafone affiliate companies. The payroll cost for these secondees is managed by Vodafone Group Enterprises (VGE) and recharged (invoiced) by the Company for payment on a monthly basis.”
London-based Vodafone has a vast operation spread across Europe, Africa, Australia, and India, with the multinational moving top talent from one subsidiary or associate to another.
The expatriates include professionals with specialities in skills such as finance and technology. Vodafone owns a five percent stake in Safaricom which falls into its category of associates.
The British multinational also owns a 65.1 percent stake in South Africa’s Vodacom Group Limited which in turn has a 35 percent interest in Safaricom.
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Besides the remuneration of the expatriates, Safaricom also incurs the cost of their accommodation.
