- Safaricom CEO Dr. Peter Ndegwa credits performance to strategic investments in technology, expansion into Ethiopia, and a diversified digital services portfolio.
- Group Earnings Before Interest and Taxes (EBIT) rose sharply by 29.5 per cent to KES104.1 billion.
- Telco to pay shareholders a total of KES48.08 billion in total dividend for the year.
Nairobi-based Safaricom has made regional business history, becoming the first company in East Africa to post over $3 billion in annual revenue. The company’s total earnings rose by 11.2 per cent to KES388.7 billion for the financial year ending March 31, 2025, driven by strategic investments in technology, expansion into Ethiopia, and a diversified digital services portfolio.
The telco giant’s net income surged by 10.8 per cent to KES69.8 billion, marking one of its strongest financial years yet. As a reward to shareholders, the company announced a final dividend of KES0.65 per ordinary share, adding to an interim dividend of KES0.55, bringing the total dividend payout for the year to KES48.08 billion.
“These results are not just about past performance—they reflect the future we are building as Africa’s leading purpose-driven tech company,” said CEO Dr. Peter Ndegwa during an investor briefing.
The results mark the conclusion of Safaricom’s five-year strategic cycle, which saw the company undergo a significant transformation from a traditional telecom operator to a fully-fledged technology company. With heightened focus on digital innovation, Safaricom has embedded technology into every aspect of its operations, from customer experience to financial services and social impact.
This shift has not only helped drive revenue but also increased the company’s relevance in a rapidly evolving market, especially as digital solutions become more central to African economies.
Group Earnings Before Interest and Taxes (EBIT) rose sharply by 29.5 per cent to KES104.1 billion, underlining the efficiency and profitability of the company’s new operating model.
Safaricom Ethiopia operations show strong promise
A major growth highlight was Safaricom’s Ethiopia operations, which contributed nearly 10 per cent to the group’s total revenue. The Ethiopian subsidiary doubled its customer base to 8.8 million and now operates more than 3,141 mobile sites.
While still in its early stages, the Ethiopian venture has seen remarkable traction. Safaricom Ethiopia now has 2.8 million active M-PESA users, who transacted over KES20.6 billion during the year. Management indicated that the business has exited the peak investment phase and is projected to turn profitable by FY 2027.
The entry into Ethiopia, Africa’s second-most populous country, is seen as a bold but strategic move that could significantly boost Safaricom’s long-term growth trajectory.
M-PESA and mobile data power Kenya revenues
In its home market of Kenya, service revenue grew by 10.5 per cent to KES364.3 billion. M-PESA, the company’s flagship mobile money platform, generated KES161 billion—accounting for 44.2 per cent of the total service revenue. The 15.2 per cent year-on-year growth in M-PESA revenues reflects its expanding role beyond simple peer-to-peer transactions into areas like wealth management, savings, and credit.
The connectivity segment also grew steadily, with revenue rising 6.5 per cent to KES185.2 billion. Mobile data was a major driver, increasing by 15.2 per cent to KES72.9 billion, fueled by higher 4G smartphone penetration and increasing data consumption. Voice services, surprisingly, also showed a modest 1.6 per cent uptick to KES80.8 billion—defying global declines in voice traffic.
Social impact at the core
Beyond financial performance, Safaricom’s community impact remained a cornerstone of its strategy. Over the past five years, the company has invested more than KES18 billion in programs focused on education, health, environmental sustainability, and economic empowerment.
Dr. Ndegwa emphasized that purpose remains central to the company’s evolution: “We are entering a new phase of growth, and we will continue harnessing innovation for social good while shaping the future of Kenya, Ethiopia and beyond.”
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(1USD=KES129.26)
