Safaricom Declares Ksh100B Profit in Major Financial Turnaround

Safaricom has recorded one of the biggest profit jumps in its history after posting a net profit of Ksh 99.7 billion for the financial year ending March 2026, up from about Ksh 59.6 billion the previous year. The 67.3 per cent growth was mainly driven by strong performance in M-Pesa, increased mobile data usage and improving operations in Ethiopia.

The telecommunications giant said its service revenue grew by 10 per cent to Sh400 billion as more customers continued to rely on digital financial services, internet bundles and mobile connectivity. Earnings before interest and taxes (EBIT) rose 15.3 per cent to Sh182 billion, while total earnings increased by 24.7 per cent to Sh119 billion.

Speaking during the release of the results, Safaricom Group CEO Peter Ndegwa said both the Kenyan and Ethiopian businesses played a major role in the company’s strong performance.

“Kenya has delivered an outstanding performance, and Ethiopia has made a valuable contribution, together making this one of our strongest results yet,” he said.

The results mark a major turnaround for the company, especially after years of heavy spending in Ethiopia following Safaricom’s entry into the market in 2022.

The Ethiopian venture had previously weighed heavily on the group’s earnings because of startup costs, currency instability and inflation. However, the losses have continued to narrow as the business gains more subscribers and expands its network coverage.

Safaricom’s growth

Last year, Safaricom reported a net income of Ksh 80.1 billion for the financial year ending March 2025. At the time, the company had projected stronger earnings for 2026 as the Ethiopia business stabilised.

The company’s M-Pesa platform once again remained a key revenue driver. In previous half-year results released in November 2025, Safaricom reported that M-Pesa revenue had risen by more than 14 per cent to Sh88.1 billion, helped by growth in Fuliza, merchant payments and mobile lending services.

Mobile data also continued to outperform traditional voice services as more Kenyans shifted toward internet-based communication and digital content consumption. Earlier financial disclosures showed Safaricom’s data revenue in Kenya had surpassed voice revenue for the first time, highlighting changing customer habits.

The strong financial results have also allowed Safaricom to increase returns to shareholders. The company announced a total dividend payout of Sh2 per share, up from Sh1.20 paid in the previous financial year. This translates to a total shareholder payout of about Sh80 billion.

Safaricom remains East Africa’s most profitable company and continues to dominate Kenya’s telecommunications sector through services such as voice, internet, M-Pesa and enterprise solutions.

The company also remains one of the biggest taxpayers in Kenya. In its 2025 financial disclosures, Safaricom said it had remitted more than Ksh 162 billion in taxes, duties and licence fees to the government.