American investment firm FMR LLC has made significant waves in the Kenyan financial market by dramatically reducing its stake in Safaricom.

The firm has slashed its shares from 921.1 million in September 2022 to approximately 314 million presently.

The decision by FMR LLC to sell off such a considerable portion of its Safaricom shares has been influenced by several critical factors.

Firstly, delays in repatriating dividends back to the United States have been a primary concern.

Safaricom has faced challenges in acquiring dollars from the Kenyan market, resulting in significant delays in distributing dividends.

These delays have undoubtedly impacted investors like FMR LLC, prompting a strategic reassessment of their investment portfolio.

Reports of delays in repatriation of dividends corroborate statements by Safaricom CEO Peter Ndegwa. In a call with investors on November 9, 2023, the Safaricom CEO acknowledged the liquidity constraints within the Kenyan market. He highlighted delays of up to four months in dividend repatriation or share sales repatriation.

Additionally, the decline in Safaricom’s valuation below Sh600 billion may have also likely played a significant role in FMR’s decision-making process.

FMR LLC’s, also known as Fidelity Institutional Asset Management, is a financial services corporation offering a range of investment management services.

These include portfolio management, financial planning, wealth management, and retirement options, catering to both individual and institutional clients globally.

The firm is managed by Fidelity Investments companies, including FIAM LLC and FIAM TC. FMR LLC’s investment decisions are guided by factors such as credit quality, security-specific features, and market valuation.

FMR LLC, holds a prominent position as one of the top five investors in Safaricom. Its decision to reduce its stake from over 900 million shares to approximately 314 million is significant, representing a 0.79% ownership of Safaricom’s total shares.

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Safaricom’s shareholder structure has retail and institutional investors holding 25% of shares, the Government of Kenya holding 35%, and Vodafone Kenya Ltd owning 40%.

Safaricom’s recent challenges, including a 49.9% decline in share price between September 2022 and November 2023, reflect broader market trends and company-specific factors.

These include declining profits from voice revenues, regulatory pressures, and corporate governance targets, contributing to Safaricom’s stock volatility.

Despite these challenges, Safaricom remains a pivotal player in the African telecommunications industry. Its revenue streams from M-Pesa transactions, airtime sales, value-added services, and corporate solutions continue to underpin its financial health.

As of March 1, 2024, Safaricom Plc closed at 13.50 KES per share on the Nairobi Securities Exchange, with investment analysts estimating its intrinsic value between KES 18.67 to KES 20.69.

For those interested in how to buy safaricom shares, the process involves several steps:

Select a Central Depository Agent (CDA), such as an investment bank or stockbroker.
Complete and sign a securities account opening/maintenance form (CDS1) with your chosen CDA.
Provide two recent passport size photographs.
Submit necessary documentation, including a copy of ID, KRA pin, and proof of payment.
Once your account is set up, work with a stockbroker to place orders for Safaricom shares. This can be done online or through a brokerage firm.

Amidst the fluctuating Safaricom share price, investors seek reassurance and clarity. As they navigate the market’s ups and downs, safaricom customer care remains a vital resource.

For those with inquiries or concerns, reaching out to safaricom customer care number, exclusively dialed from 0722000000, offers direct access to assistance.

The safaricom share price today reaches a low price of 13.30 and a high price of 13.90.