A smaller loss in Ethiopia and M-Pesa’s double-digit growth helped Safaricom report a 36.9 percent jump in profits, making the Kenyan unit the first to cross the Sh100 billion mark in earnings.
The telecoms operator’s net profit grew to Sh95.6 billion from Sh69.79billion the previous year, allowing it to increase its total dividend payout to Sh80 billion.
The Kenya business continued to be the main profit driver, powered by M-Pesa, the firm’s largest unit, which is on course to generate half of the profits.
The profit for the Kenyan unit alone stood at Sh118.3 billion, while its revenues also crossed the Sh400 billion mark for the first time.
Safaricom reported loss in Ethiopia dropped by 35 percent compared to the previous financial year, which was heavily impacted by a depreciation of the birr currency.
The loss in Ethiopia that is attributed to Safaricom dropped to Sh21.2 billion from Sh36 billion in the same period a year earlier, translating to a gain of Sh14.8 billion.
The telecoms operator launched in Ethiopia in 2022 as the government there opened up the tightly controlled economy to foreign competition and is hoping its presence in Africa’s second most populous country will power future growth.
The higher profitability helped the telecoms operator raise its total dividend payout to Sh2 per share, adding a final Sh1.15 dividend to an interim payment of Sh0.85 earlier in 2026.
Shareholders will receive a combined payout of Sh80 billion, representing more than three-quarters of the telco’s earnings and the highest dividend payout by a Nairobi bourse-listed firm.
Safaricom’s share price rose 6.8 percent to Sh32.1 a piece, having gained 13.2 percent since the start of the year. Its diversification from the saturated voice and SMS business is paying off, with M-Pesa, mobile data and fixed internet emerging as sales drivers.
Safaricom’s revenue rose to Sh414.1 billion in the year to March, from Sh371.4 billion in the same period a year earlier, reflecting a 11.5 percent growth.
Revenue from mobile financial service M-Pesa rose 13.4 percent from Sh182.7 billion, accounting for 45.6 percent of Safaricom’s sales.
‘Monetisation of the M-Pesa ecosystem remains healthy with chargeable transactions growing by 11.5 percent year on year to 42.3 transactions per customer per month,’ said Dilip Pal, the Safaricom Plc chief finance officer.
The volume of zero-rated transactions, which include person-to-person payments below Sh100 and merchant payments under tills, fell slightly to 57.8 percent from 58.6 percent, even as the total transaction volumes rose by 25 percent.
The value of chargeable transactions was Sh30.5 trillion or 73.3 percent of Sh41.7 trillion in M-Pesa transactions in the 12 months.
This implies that Safaricom is now able to generate more revenue from its M-Pesa transactions.
‘Kadogo transactions accounted for 39 percent of consumer payments and 56.8 percent of business payments and grew 40 and 30 percent, respectively. This is how we align our business to our purpose by driving inclusion through affordability,’ said Mr Pal.
Safaricom is also ramping up its data business to offset stagnating mobile calls on increased investments in 4G and 5G networks, as voice saw a small revenue fall due to saturation and rivals like WhatsApp.
The voice business recorded a 1.3 percent gain in revenues to Sh81.8 billion, marking a big shift as mobile data for the first time overtook full-year sales from calls. The telco has in the past five years raced to convert millions of 2G and 3G users to 4G and some to 5G.
This has come through partnerships like the one with Google, where they are offering affordable smartphones, with customers paying as little as Sh20 a day for nine months.
The number of 4G and 5G devices on the network rose by 31.8 percent to 30.8 million from 23.4 million at the end of March 2025 while the average data usage per customer rose by 16.6 percent to 4.9GB per month.
Besides M-Pesa, data is one of Safaricom’s fastest-growing revenue lines, and it hopes that increased smartphone usage will boost it further.
Revenue from mobile data, where Safaricom has been aggressively fighting for market share, rose 14.4 percent to Sh83.3 billion, while fixed internet to homes and offices rose 12.2 percent to Sh20.2 billion. Revenues from SMS dropped 11.8 percent to Sh11 billion as messaging apps like WhatsApp continue to munch its market share.
The shifts in earnings reflect Safaricom’s alteration from a telecom firm to a technology and financial services company offering loans to insurance and unit trusts. Safaricom expects to make a profit in Ethiopia in the year ending March 2027.
‘The Ethiopia business has a clear trajectory towards break-even, supported by healthier industry dynamics,’ said Peter Ndegwa, Safaricom Plc chief executive officer.