Safaricom has announced that it has appointed Peter Ndegwa, currently Managing Director of Diageo – Continental Europe, as CEO. His appointment is effective 1 April 2020.
Peter Ndegwa's experience has mainly been in breweries – he has had various leadership roles at Diageo:
- July 2018-present: Diageo Managing Director, Continental Europe
- July 2015-June 2018: Guiness Nigeria Managing Director
- December 2011-July 2015: Diageo Managing Director, Ghana
- July 2008-November 2011: EABL CFO
We think the appointment of a Kenyan to the helm may be a positive for Safaricom as it navigates dominance regulations, as we await the imminent market consolidation in the Kenyan telco sector.
He will also be the first Safaricom CEO who has not been an ex-Vodafone employee. However, we think his experience in the consumer industry will be an asset in formulating strategy in a competitive market.
We maintain our Hold recommendation at KES27.42.