Safaricom NSE (SCOM) has announced strong financial results for the year ended March 31, 2026, highlighted by significant revenue growth and a dividend payout to shareholders.
Group Net Income increased to Shs100 billion, fueled by ongoing customer growth, greater use of digital services, and solid performance across main product lines.
As part of its FY26 results, Safaricom declared a dividend payout of 2 shillings per share, totaling Shs80.1 billion, which is a 66.7% increase from the previous year. This includes an interim dividend of 85 cents per share and a recommended final dividend of 1 shilling 15 cents per share, which is subject to shareholder approval. This showcases the company’s strong balance sheet and confidence in its long-term growth potential.
“We have shown strong execution in the first year of our five-year strategy, signaling a great setup for delivering our vision. We delivered strong performance, with acceleration in the second half, surpassing Group guidance with great performance in Kenya offsetting the impact of currency reforms and the timing of market repair actions in Ethiopia,” said Peter Ndegwa, Group CEO, Safaricom PLC.
During the year, Safaricom Kenya’s service revenue rose by 10% to shs400.8 billion, while Earnings Before Interest and Tax (EBIT) grew by 15.3% to Shs182.3 billion.
Safaricom reached a total of 71.6 million customers across the Group, which reflects ongoing trust in the brand and strong demand for digital connectivity and financial services.
“These results show a business that continues to demonstrate resilience and momentum. We have sustained strong growth in service revenue, driven by double-digit growth in Kenya and accelerated growth in Ethiopia, while maintaining profitability despite ongoing investment in Ethiopia. At the same time, we are starting to see the benefits of scale in Ethiopia, with improving commercial momentum and reduced startup costs. This balance of growth, investment, and discipline is what the Board expects at this stage of our journey,” said Adil Khawaja, Chairman, Safaricom PLC.
Safaricom Ethiopia continued its growth, contributing 12.5% to the Group’s service revenue growth for the year. Subscriber numbers in Ethiopia climbed to 13.6 million customers, aided by a stronger network that now covers 60% of the population with 3,504 sites. M-PESA adoption in Kenya also grew, with 41 million active customers generating Shs182.7 billion in revenue for the year.
Guided by its mission to transform lives, Safaricom invested in social impact initiatives across Kenya and Ethiopia. Through the Safaricom and M-PESA Foundations, over 4.4 million lives were improved during FY26 through programs focused on education, health, and economic empowerment.i
“We continue to invest in our network and IT systems to support upgrades and user experience. Ethiopia’s performance shows reduced losses compared to the previous period, greatly boosting Group performance. We now move into the second year of our Vision 2030 strategy with a commitment to maintain our execution momentum,” said Dilip Pal, Group Chief Finance Officer, Safaricom PLC.
Key highlights:
Group Service revenue grew by 11.5% to Shs414.1 billion.
Mobile data revenue increased by 18.3% to Shs92.9 billion.
M-PESA revenue grew by 13.4% to Shs182.7 billion.
Safaricom Ethiopia service revenue grew by 86.6% to Shs14.1 billion.
These results for Safaricom are significant. Crossing the Shs100 billion mark in Net Income is a historic milestone for any East African company. The “Ethiopia gamble” seems to be shifting from a heavy capital drain to a genuine growth driver, despite the currency reform challenges mentioned by Peter Ndegwa.
Here is a summary of the key performance indicators from the announcement to help you understand the scale of these figures:
Financial Performance at a Glance
Metric FY26 Performance Growth (YoY)
Group Net Income Shs100 Billion
Group Service Revenue Shd414.1 Billion ⬆️ 11.5%
EBIT (Kenya) Shs182.3 Billion ⬆️ 15.3%
Total Dividend Shs2.00 Per Share ⬆️ 66.7%
Key Growth Drivers
The M-PESA Juggernaut: M-PESA continues to be the crown jewel, with 41 million active customers in Kenya generating Shs182.7 billion. This accounts for nearly 44% of the Group’s total service revenue.
Ethiopia Scaling Up: With 13.6 million customers and coverage of 60% of the Ethiopian population, the 86.6% revenue growth in Ethiopia (to Shs14.1 billion) indicates that while it still represents a small portion of the total, the growth momentum is substantial.
Data Dominance: Mobile data revenue grew by 18.3%, indicating that as smartphones become more common, Safaricom is successfully monetizing the shift from voice to data.
Dividend Impact
The increase to a Shs2.00 total dividend (interim + final) sends a strong message to the market. By paying out Shs80.1 billion, the board reassures shareholders that the peak “capital anxiety” regarding the Ethiopia rollout might be behind them. They demonstrate confidence in their cash flow by rewarding investors.
Observations
The fact that Kenya’s strong performance offset Ethiopia’s startup costs and currency reforms is crucial for investors. It shows that the core market in Kenya remains robust and capable of supporting regional expansion smoothly.
With 71.6 million total customers across the group, Safaricom is not just a telecom; it’s becoming a regional digital and financial service provider.
Are you looking for an analysis on how this might affect the SCOM share price on the NSE tomorrow, or do you need help calculating specific ratios from these results?
Safaricom’s “Big Bet” Begins to Pay Off: Ethiopia Gains Momentum as Group Profits Hit Shs100B
For years, the conversation around Safaricom PLC (NSE: SCOM) has centered on a challenging question: When will the large investment in Ethiopia stop dragging down the Kenyan powerhouse?
According to the FY26 results released today, that answer is arriving sooner than many expected. While Safaricom Kenya remains the main engine of the group, the “Ethiopia drag” is now transforming into “Ethiopia momentum.”
The Ethiopia Pivot: From Startup to Scaler
The most significant figures in this year’s report aren’t just the Shs100 billion profit, but also the operational progress made across the border.
Network Density: With 3,504 sites, Safaricom now covers 60% of the Ethiopian population.
Revenue Surge: Service revenue in Ethiopia skyrocketed by 86.6% to Shs14.1 billion.
Narrowing Losses: Group CFO Dilip Pal noted that reduced losses in Ethiopia have significantly boosted the overall bottom line, suggesting the market has moved past its most capital-heavy “infancy” stage.
Kenya: The Resilient Fortress
Despite a maturing market, Safaricom’s Kenyan operations showed no signs of slowing down. The business produced a 10% increase in service revenue (Shs400.8 billion), demonstrating that the core market still has room for growth through digital transformation.
M-PESA remains crucial, with 41 million active users now contributing Shs182.7 billion.
Mobile Data surged by 18.3%, reflecting a successful shift as customers move away from traditional voice services toward a more data-focused digital lifestyle.
A “Confidence” Dividend
Perhaps the most telling message for the Nairobi Securities Exchange today was the dividend announcement. By declaring a total dividend of Shs2.00 per share—a significant 66.7% increase from the previous year—the board has signaled a strategic shift.
“This balance of growth, investment, and discipline is what the Board expects at this stage of our journey,” said Chairman Adil Khawaja.
The payout of Shs80.1 billion indicates that Safaricom’s balance sheet is strong enough to support the “Vision 2030” expansion while still providing a good return to shareholders.
The Road Ahead: Vision 2030
As Safaricom enters the second year of its five-year strategy, the focus will shift from “market repair” and setup to execution. With 71.6 million customers across the group, the company has evolved from a Kenyan telecom into a regional tech leader.
The upcoming year will require careful navigation of Ethiopia’s currency reforms, but with the Kenyan “mothership” operating smoothly and Ethiopia’s startup costs decreasing, Safaricom appears well-positioned to lead the East African digital economy.
Key FY26 Statistics:
Total Group Customers: 71.6 Million
M-PESA Revenue: Shs182.7 Billion
Ethiopia Customers: 13.6 Million
Final Dividend Recommended: S 1.15 per share
Safaricom’s latest financial performance signals a turning point where its ambitious regional expansion aligns with its domestic strength. By achieving a Group Net Income of Shs100 billion, the firm has addressed concerns that its investment in Ethiopia would indefinitely suppress returns for shareholders. This achievement is underscored by a substantial 66.7% increase in dividend payouts, reaching Shs2.00 per share. This move indicates the board’s belief that the heaviest burdens of the Ethiopia rollout are now behind them.
The narrative of these results centers on decreased startup losses in Ethiopia, allowing significant profits from the Kenyan “mothership” to enhance the bottom line. Ethiopia’s service revenue surged by an impressive 86.6% to Shs14.1 billion. Meanwhile, Kenya showed resilience, delivering a 10% growth in service revenue and proving that there remains potential for further digital transformation.
