Collymore to stay on as CEO for two more years

Guests during the release of Safaricom’s full-year financial results at Safaricom House in Nairobi on May 10, 2017 PHOTO | SALATON NJAU 

By MUTHOKI MUMO

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Summary

• Safaricom board chairman Nicholas Ng’ang’a said Wednesday that the decision to renew Mr Collymore’s contract was based on his track record managing the company’s expansion into new products and steering Safaricom through “very difficult times”.
• The company is currently going through a period characterised by regulatory uncertainty, shaky public confidence and increasingly aggressive competition.

Bob Collymore will remain at the helm of Safaricom for two more years, a pointer to the telco’s preference for stability rather than change as it navigates looming regulatory changes.

Safaricom board chairman Nicholas Ng’ang’a said Wednesday that the decision to renew Mr Collymore’s contract was based on his track record managing the company’s expansion into new products and steering Safaricom through “very difficult times”.

“You don’t rock a boat when it is sailing smoothly and beautifully,” said Mr Ng’ang’a.

He added that the Safaricom board had also taken into consideration the regulatory, economic and socio-political climate as it made its decision on renewing Mr Collymore’s tenure.

Safaricom is currently going through a period characterised by regulatory uncertainty, shaky public confidence and increasingly aggressive competition. In these storms, the Safaricom board sought the security provided by leadership stability.

Mr Collymore took charge of Safaricom in 2010 on a three-year contract, succeeding Mr Michael Joseph. His contract was extended twice before for two-year terms, and his time at the telco was expected to end this year in August.

During Mr Collymore’s time at the helm, Safaricom has more than doubled its revenues to hit Sh212.9 billion in the year to March 2017 from Sh83.96 billion in 2010.

READ: Safaricom full-year profit rises 18.3 per cent to Sh48bn

The sailing has been far from smooth. Mr Collymore took over during the heat of a price war among the different telecom operators and during his first investor briefing, he had the unenviable task reporting a 13 per cent drop in profitability.

Seven years later, Safaricom has cemented its leadership in mobile money and continues to command market leadership in voice, mobile data and SMS services.