(Corrects share price in paragraph 5 to 19.10 shillings, not9.10)
NAIROBI, July 26 (Reuters) - Kenyan telecom operatorSafaricom will pay a special dividend of 0.68shillings ($0.0067) per share, it said on Tuesday.
The firm, which is 40 percent owned by Britain's Vodafone, has reported consistent profit growth in recent years,leading to a build-up of its cash reserves.
"There is room for this one-off special dividend of 27.5billion shillings due to the cash position of the company, andthe significant retained earnings of 82 billion shillings," saidSafaricom CEO Bob Collymore in a statement.
Higher earnings at Safaricom have been driven by growth inInternet and its M-Pesa mobile phone-based payments business.Revenue from calls also grew in the year ending in March.
Safaricom's shares rose more than 5 percent to 19.10shillings after news of the special dividend.
The firm said the dividend would be paid out on Dec. 1 toshareholders on the books at the close of trading on Sept. 2. ($1 = 101.4500 Kenyan shillings) (Reporting by Duncan Miriri; Editing by Louise Heavens)