Safaricom, the leading telecommunications provider in Kenya, has announced a significant increase in its Group service revenue, reaching nearly US$3.2 billion for the financial year ending March 31, 2026. This growth was primarily driven by stellar performance in its domestic market, which effectively offset challenges posed by currency reforms and the timing of market reestablishment efforts in Ethiopia.
The financial results were disclosed on Thursday. In Kenya, service revenue rose by 10% to US$3.1 billion. Meanwhile, Ethiopia contributed 12.5% to the Group’s overall service revenue growth, with subscriber numbers climbing to 13.6 million as the network expanded to cover 60% of the country.
The Group’s net income for the period amounted to US$775 million, with earnings before interest and tax from Kenya increasing by 15.3% to US$1.41 billion.
“We have demonstrated solid performance, especially in the second half of the year, exceeding Group expectations thanks to remarkable results in Kenya that offset the effects of currency reforms and the timing of market repairs in Ethiopia,” stated Peter Ndegwa, Group CEO of Safaricom PLC.
The company declared a total dividend of US$0.015 per share, a 66.7% increase from the previous year, amounting to roughly US$620 million. This payout includes an interim dividend of 85 cents and a proposed final dividend of US$0.089, pending shareholder approval.
M-PESA, the mobile money platform, played a crucial role in Kenya’s exceptional performance, boasting 41 million active users and generating US$1.41 billion in revenue for the year. The total number of group customers reached 71.6 million.
Ethiopia’s improving financial metrics contributed positively to the overall results, with the operation reporting a decrease in start-up losses compared to the prior period, supported by 3,504 network sites.
“We have maintained strong revenue growth, fueled by double-digit increases in Kenya and accelerated growth in Ethiopia, while keeping profitability intact despite ongoing investments in Ethiopia. We are beginning to reap the rewards of scale in Ethiopia, as evidenced by stronger commercial momentum and lower start-up costs. This balance of growth, investment, and discipline aligns with the Board’s expectations at this stage of our journey,” said Adil Khawaja, Chairman of Safaricom PLC.
Group CFO Dilip Pal highlighted that the company is entering its second Vision 2030 year with firm execution momentum. “Ethiopia’s progress reflects reduced losses compared to the previous period, significantly enhancing Group performance,” he added.
