Safaricom has reported a 35.9 per cent increase in group net income to US$448.7 million for the six months ended 30 September 2026, supported by service revenue growth of 13.1 per cent to US$1.74 billion and a 27.5 per cent increase in EBITDA to US$996.1 million.
M-Pesa revenue exceeded US$771.8 million for the first time in a half-year, increasing 13.6 per cent, with the company reporting that 53 per cent of all M-Pesa transactions are now free or zero-rated. Safaricom’s Kenyan business also recorded its first half-year operating profit above US$785 million, representing a 13.7 per cent increase to US$784.9 million.
Ethiopia, however, is emerging as a significant growth driver. Service revenue in the market increased 71.6 per cent to US$81.7 million, while three-month active customers grew 38.4 per cent to 15.4 million. Meanwhile, the operation’s EBITDA loss narrowed by 96.5 per cent to approximately US$3.3 million.
Management is now targeting EBITDA break-even in Ethiopia by the end of the financial year. The market contributed 17 per cent of the group’s overall service revenue growth, signalling a significant shift from the substantial investment and financial losses associated with its initial market entry.
For companies distributing video and digital content across East Africa, Safaricom’s Ethiopian progress could have important implications beyond the group’s improving financial performance. A second-market telecommunications operator approaching profitability, with 15.4 million active customers, adds a new dimension to the region’s digital distribution landscape.
With Safaricom serving 71.6 million customers across Kenya and Ethiopia, its expanding footprint could create opportunities for streaming services, content distributors and broadcasters through bundled subscriptions, competitive data pricing and zero-rated content partnerships. As Ethiopia’s telecommunications market continues to open up, Safaricom’s improving position could help reshape the commercial opportunities available to digital media businesses seeking to expand across the region.
