Peter Ndegwa, the Chief Executive Officer (CEO) of Safaricom PLC, stands as a prominent figure in the African telecommunications industry. His leadership has been instrumental in steering Safaricom, a company renowned for pioneering M-PESA, the world’s most advanced mobile payment system.
Early life and education
Born in Kenya around 1969, Ndegwa’s academic journey commenced at Starehe Boys’ Centre and School, a prestigious institution known for nurturing future leaders. He furthered his education at the University of Nairobi, earning a Bachelor’s degree in Economics. Demonstrating a commitment to excellence, Ndegwa pursued an MBA from the London Business School. Additionally, he is a Certified Public Accountant and a member of the Institute of Certified Public Accountants of Kenya (ICPAK).
Professional career
Ndegwa’s professional trajectory is marked by significant roles across various sectors. He began his career as a consultant at PricewaterhouseCoopers (PwC) in the United Kingdom, where he honed his expertise in financial services.
In 2004, Ndegwa joined East African Breweries Limited (EABL) as the Director of Strategy in Nairobi. His strategic insights led to his appointment as Managing Director of Guinness Ghana Breweries Limited in December 2011. He later served as Managing Director of Guinness Nigeria, overseeing operations in these key markets.
In July 2018, Ndegwa was appointed General Manager for Diageo’s business in Western and Eastern Europe, including Russia, based in Amsterdam. His leadership spanned over 50 countries, excluding the United Kingdom and Ireland.
Leadership at Safaricom
On October 24, 2019, Ndegwa was appointed CEO of Safaricom, effective April 1, 2020, becoming the first Kenyan to lead the company. He succeeded Michael Joseph, who had been serving as interim CEO following the passing of Bob Collymore in July 2019. Under his stewardship, Safaricom has continued to innovate and expand its services, solidifying its position as a leader in the African telecommunications sector.
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Recent developments
In September 2024, Safaricom secured 15 billion shillings (approximately $116.73 million) through a sustainability-linked loan from a consortium of local banks, including KCB, ABSA, Standard Chartered Kenya, and Stanbic. This funding aims to accelerate the company’s sustainability initiatives, such as transitioning transmission sites to renewable energy sources. Ndegwa emphasized that this financial move supports the acceleration of Safaricom’s sustainability goals.
However, in November 2024, Safaricom adjusted its full-year earnings forecast downward after reporting a sharp decline in net income, attributed to the depreciation of Ethiopia’s birr currency. Despite this short-term challenge, Ndegwa expressed confidence in the long-term commercial success of Safaricom’s Ethiopian business, anticipating profitability by the 2027 financial year.
Salary
Ndegwa received a total compensation of Ksh 252.3 million (approximately $1.95 million) for the fiscal year 2024. This represents a 19.4% decrease from his previous year’s earnings of Ksh 313.1 million. His 2024 compensation package included a base salary of Ksh 94.3 million, a performance-based short-term incentive of Ksh 23.9 million, and a long-term incentive award of Ksh 134.1 million. The reduction in his total compensation was primarily due to a significant 31.7% decrease in share-based awards.
Under Ndegwa’s leadership, Safaricom has experienced notable growth, with total assets increasing by 25.9% from Ksh 509.2 billion to Ksh 641.2 billion, and revenue rising by 12.4% from Ksh 310.9 billion to Ksh 349.5 billion. However, the company faced challenges, with profit declining by 18.7% from Ksh 52.5 billion to Ksh 42.7 billion.
Personal life
Ndegwa is married and maintains a relatively private personal life. His professional journey reflects a dedication to excellence and a commitment to driving growth and innovation within the African telecommunications industry.
