Safaricom CEO, Peter Ndegwa, recently addressed the declining stock price of Safaricom at the Nairobi Securities Exchange (NSE). After reaching an all-time high of Ksh44.95 per share in mid-2021, the stock has experienced a consistent downward trend, touching Ksh13.00 per share on May 15. However, Ndegwa explained that the decline should be attributed to external factors, including the bearish market conditions at the NSE and the departure of foreign investors from the exchange. He emphasized that Safaricom's core business fundamentals remain robust.

During an interview with Yvonne Okwara on Citizen TV, Ndegwa highlighted that the downward trend is not unique to Safaricom alone, as several other shares listed on the stock exchange have also been affected. Business analysts who closely follow Safaricom have valued the share between 20 and 39 shillings, with an average estimate of 28 to 30 shillings. This suggests that the stock is currently trading at a significant discount, indicating that factors influencing the share prices extend beyond the underlying strength of the company.

Safaricom's financial results for the fiscal year ending March 2023 revealed a net profit of Ksh52.48 billion, a decrease from the Ksh67.49 billion posted in 2022. This decline marks the third consecutive year of profit reduction, with the company experiencing a 6.8 percent decrease in 2021, which was the first decline in nine years. Ndegwa attributed this profit decline to the costs associated with the expansion into Ethiopia over the past year.

The announcement of Safaricom's earnings drop resulted in a substantial erosion of paper wealth, amounting to over Ksh32 billion at the NSE counter. On May 11, the company's share price slid to Ksh14.80, down from Ksh15.30 on the previous day. Despite these challenges, Ndegwa remains confident in the resilience and potential of Safaricom, emphasizing the long-term value and stability of the company's operations.