In a year marked by economic strain and widespread salary freezes across Kenya, one man has stood out for bucking the trend—Safaricom CEO Peter Ndegwa, who has emerged as the highest paid executive on the Nairobi Securities Exchange (NSE).
For the financial year ending March 2025, Ndegwa took home KES 294.2 million (about $2.2 million) in total compensation—a 17% jump from the previous year. This significant increase underscores Safaricom’s rewarding of its top leadership following a strong recovery in profits, particularly from mobile money and mobile data services.
Breaking Down the KES 294.2 Million Package
Peter Ndegwa’s record pay package consists of several components:
- KES 98.7 million ($765,100) as base salary
- KES 116.7 million ($904,600) in performance bonus
- KES 33.5 million ($259,187) in non-cash perks
- KES 45.3 million ($351,155) through the Employee Performance Share Award Plan (EPSAP)
While the company doesn’t itemize what non-cash benefits entail, they often include housing, school fees, luxury car use, club memberships, and other executive perks common in Kenya’s corporate elite.
Comparison with Other NSE Executives
Ndegwa’s total package puts him ahead of other heavyweights in the NSE-listed space. The closest contender is KCB Group’s CEO Paul Russo, who earned KES 250.2 million ($1.9 million) during the same period—a hefty 40.8% increase for him, but still shy of highest paid CEO, Peter Ndegwa.
This development means Safaricom not only leads in telecom profits but now also in executive compensation, outpacing even Kenya’s largest banks.
Why the Huge Executive Pay?
The large bonuses and share awards came on the back of Safaricom’s return to profit growth, after two subdued years linked to its expensive rollout in Ethiopia. For the year ending March 2025, net profit rose 11% to KES 69.8 billion ($540 million).
The surge was driven by strong performances in mobile data usage, M-Pesa revenues, and reducing losses from its Ethiopian operations—a sign that Safaricom’s East African expansion is slowly bearing fruit.
Executives were rewarded accordingly. Apart from Ndegwa:
- Safaricom CFO Dilip Pal received KES 132 million ($986,000), up from KES 113.8 million.
- The CEO and CFO combined earned KES 426.7 million ($3.2 million)—a 16.5% rise from the previous KES 366.1 million.
- Chairman Adil Khawaja was paid KES 24.5 million ($189,918).
- Non-executive directors shared KES 84.7 million ($655,319).
In total, Safaricom’s director remuneration hit KES 511.4 million ($3.8 million)—a 10% rise from last year.
Read: How Safaricom and KPC Will Help Fund Kenya’s Sh4.24 Tn Budget
Criticism vs. Corporate Performance
While Safaricom’s financial success is undeniable, the stark contrast between executive pay and average worker realities hasn’t gone unnoticed. Across Kenya, inflation has eroded purchasing power, most companies have frozen hiring or pay, and many households are struggling to make ends meet.
The optics of raising executive pay amid such conditions could invite public backlash or investor scrutiny, even if the rewards are performance-based.
However, from a corporate governance perspective, Safaricom’s board seems confident in the value delivered by its top brass. And shareholders will likely support the incentives—so long as the company’s profits continue on an upward trajectory.
A Return to Growth—and Ambition
Safaricom’s 2025 rebound in profit represents a turning point after years of investment-heavy expansion. The company, already the dominant telecom and fintech player in Kenya, has eyes set on long-term success in Ethiopia, East Africa’s largest untapped telecom market.
Despite early challenges in Ethiopia, the telco remains bullish about its growth potential across the region. With nearly half of Africa’s population under 25 and mobile penetration still rising, Safaricom’s mobile data, voice, and financial services could become even more integral in the coming decade.
A Look Ahead
With Peter Ndegwa at the helm and a high-performing leadership team behind him, Safaricom continues to set the pace for East Africa’s corporate sector. The high executive payouts are a reflection of confidence in management and long-term strategy.
But in a country grappling with inequality, rising living costs, and stagnant wage growth, the growing gap between the boardroom and the average Kenyan worker remains an uncomfortable truth.
Conclusion
Peter Ndegwa’s KES 294.2 million pay package not only cements his position as the highest paid CEO on the NSE, but also highlights the complex realities of rewarding performance in a challenging economy. As Safaricom eyes deeper growth across East Africa, its compensation structure will likely remain a talking point in both financial and social spheres.
