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How The Government of Kenya is Spying on Your Phone: An Urgent Exposé of State Surveillance

During the recent Gen Z-led protests that shook William Ruto personally and his administration to its very core, many Kenyans found themselves asking a chilling question: How did the police track them down so easily, even in the supposed safety of their homes? Scores of activists and protesters were abducted, many never to be seen again. Suspicion quickly fell on Safaricom and Kenya Power, accused of handing over personal information to a rogue state. But the truth may be even more disturbing—and far simpler than most would imagine... In a revelation that will shock every Kenyan, your private communications—phone calls, texts, and even your physical location—is being monitored without your knowledge. The Kenyan government has been accused of engaging in widespread surveillance of its citizens, using sophisticated tools provided by Israeli cyber-espionage firm Circles. This disturbing information was uncovered in a damning report by Citizen Lab, a digital rights watchdog based at the Un
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Safaricom CEO Peter Ndegwa’s KSh 62 Million Annual Bonus Pay Cut: A Comedy of Corporate Complications and Economic Implications



The ever-dramatic world of corporate Kenya has come up trumps again, and the latest twist comes from the hallowed halls of Safaricom, where CEO Peter Ndegwa’s annual bonus has been slashed by an eye-watering KSh 62 million.

This is not just a simple reduction in remuneration but a storyline replete with irony, strategic manoeuvres, and broader economic implications for you, dear and valued Safaricom customer

The Narrative of Ndegwa’s Declining Bonus
Peter Ndegwa, who took over the reins of Safaricom in April 2020, has witnessed a rollercoaster of remuneration since his appointment.

The latest annual report reveals that his performance bonus for the year ending March 2024 plummeted to KSh 134.1 million from the previous year’s KSh 196.3 million. This decline, the first since he assumed office, has caused his total annual pay to dip to KSh 252.3 million from KSh 313.1 million.

The Backstory: Safaricom’s Performance Metrics
Safaricom’s annual report lays bare the metrics used to determine executive bonuses. While specifics remain under wraps, the factors include profitability, cash flow growth, stock market performance, shareholder returns, and the development of new revenue streams.

Despite a marginal increase in consolidated net profit to KSh 62.99 billion, the Kenyan unit’s growth was overshadowed by substantial losses from its Ethiopian subsidiary, where Safaricom holds a 51.67 percent stake.
The Ethiopian venture, a strategic move to expand into new markets, has been a financial sinkhole, posting a net loss of KSh 42.09 billion. Consequently, Safaricom’s share of these losses amounted to KSh 21.7 billion, significantly impacting overall profitability.

The Broader Economic Context
The reduction in Ndegwa’s bonus is not merely a corporate footnote but a reflection of broader economic currents.

Safaricom’s decision to curb executive bonuses while maintaining a steady dividend payout (KSh 48.08 billion) underscores the delicate balance companies must strike between rewarding leadership and ensuring shareholder satisfaction. This move can be seen as a prudent response to the economic pressures exerted by the underperforming Ethiopian venture and the tepid stock price performance.

Kenya’s corporate landscape is acutely sensitive to such high-profile adjustments. By trimming executive pay, Safaricom sends a signal of accountability and responsiveness to performance outcomes, a stance that may bolster investor confidence in the long term. Moreover, the emphasis on share-based compensation aligns executive interests with those of shareholders, promoting a culture of sustained growth and value creation.

The Hilarious Irony: A Comedic Take
Let’s not ignore the inherent comedy in this corporate drama though. Imagine the boardroom scene: Peter Ndegwa, known for his meticulous corporate strategies, suddenly facing the grim reality of a KSh 62 million cut. Picture the awkward shuffle, the nervous coughs, and the dramatic pauses as the finance team presents the figures. It’s almost Shakespearean, with a modern twist—corporate tragedy meets high finance farce.

Yet, amid the chuckles, there lies a serious undertone. The adjustment in Ndegwa’s bonus is a reminder of the ruthless efficiency of corporate governance. In the game of high stakes and higher paychecks, even the most astute executives are not immune to the ebbs and flows of market performance.

The Long-Term View: Implications and Insights
Looking ahead, Safaricom’s strategic focus on performance-based rewards and share ownership schemes offers a blueprint for corporate Kenya. By tying compensation to long-term performance, the company not only incentivises excellence but also ensures alignment with shareholder interests. This approach could serve as a model for other firms navigating the complex interplay of executive pay and market dynamics.

The reduction in Peter Ndegwa’s bonus is more than a headline; it’s a reflection of Safaricom’s strategic recalibration in response to market realities. While it offers a moment of corporate humour, it also underscores the serious business of aligning executive incentives with long-term value creation.

As Kenya’s economy continues to evolve, such moves will be critical in shaping the corporate landscape, ensuring resilience and sustained growth amidst global uncertainties.

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