Safaricom Records Historic Profit Growth
Kenya’s leading telecommunications company, Safaricom, has posted a record net profit of Sh99.7 billion for the financial year ending March 2026, driven largely by the continued growth of M-Pesa and rising demand for mobile data services.
The results mark one of the strongest financial performances ever recorded by a company in East Africa and reinforce Safaricom’s position as the region’s most dominant telecom and fintech giant. The company’s profit after tax grew by more than 67 percent compared to the previous financial year, signaling strong recovery momentum and expanding digital adoption across Kenya and Ethiopia.
The announcement comes at a time when Kenya’s digital economy is rapidly evolving, with more consumers and businesses relying on mobile money platforms for payments, savings, lending, and investments.
M-Pesa Continues to Drive Revenue Growth
At the center of Safaricom’s impressive performance is M-Pesa, the mobile money platform that has transformed financial transactions across Africa.
According to the company’s annual financial report, M-Pesa revenue rose by 13.4 percent to Sh182.7 billion, further cementing its role as Safaricom’s biggest growth engine. The platform now contributes close to half of the company’s service revenue, highlighting how fintech is becoming more profitable than traditional voice services.
Originally launched as a money transfer service, M-Pesa has evolved into a fully integrated financial ecosystem offering merchant payments, savings products, digital loans, international remittances, and wealth management solutions.
Today, millions of Kenyans use M-Pesa daily for everything from paying rent and utility bills to receiving salaries and accessing credit. Small businesses, supermarkets, transport operators, and online merchants have also increasingly embraced the platform as Kenya moves toward a cashless economy.
Speaking during the release of the financial results in Nairobi, Safaricom Group CEO Peter Ndegwa said the company’s performance reflects the growing importance of digital services in people’s lives.
“These results are a reflection of our continued commitment to innovation and delivering solutions that improve lives and support businesses,” said Peter Ndegwa.
Mobile Data Business Records Strong Expansion
Beyond M-Pesa, Safaricom’s mobile data business also played a significant role in boosting earnings.
Revenue from internet services continued to rise as smartphone usage, video streaming, online learning, and remote work became more common across Kenya. The company reported increased data consumption among both individual consumers and businesses, helping offset the slowdown in traditional voice revenue.
Industry analysts say Safaricom’s investment in network infrastructure and 5G connectivity has strengthened its dominance in the telecommunications market, especially as digital lifestyles continue expanding among younger consumers.
The company has also continued investing heavily in fibre internet services for homes and businesses, a move that is helping diversify revenue streams beyond mobile connectivity.
Read Also: Safaricom Ordered to Pay KSh 1.4 Billion in Landmark M-Pesa USSD Patent Case
Ethiopia Expansion Begins Showing Positive Results
Another major highlight from the results was the improving performance of Safaricom Ethiopia.
The Ethiopian operation, which initially required massive infrastructure investment, significantly reduced its losses during the financial year. Revenue from the Ethiopian market surged as the company expanded network coverage and attracted millions of subscribers.
Safaricom entered Ethiopia after securing one of the country’s first private telecom licenses, marking one of the biggest business expansions by a Kenyan company into another African market.
Although the Ethiopian business is still in its growth phase, analysts believe it represents one of Safaricom’s biggest long-term opportunities due to Ethiopia’s large population and growing mobile penetration.
Peter Ndegwa noted that the Ethiopian business is gaining momentum faster than expected and continues to show strong customer adoption.
Investors Rewarded With Strong Dividend Payout
Following the strong financial performance, Safaricom announced a total dividend payout exceeding Sh80 billion to shareholders.
The announcement was welcomed positively by investors at the Nairobi Securities Exchange, where Safaricom remains one of the most actively traded stocks.
Market analysts say the company’s ability to maintain strong profitability while expanding internationally has strengthened investor confidence and reinforced Safaricom’s reputation as one of the most stable dividend-paying companies in East Africa.
The earnings report also comes as pension funds and institutional investors continue increasing exposure to technology and fintech-related stocks.
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Safaricom’s Growing Influence in Kenya’s Economy
Safaricom’s latest financial results highlight how deeply the company has become embedded in Kenya’s economy.
From mobile payments and internet connectivity to digital banking and business solutions, Safaricom now powers critical parts of everyday economic activity. M-Pesa alone processes billions of shillings daily and supports millions of businesses across the country.
Financial experts say the company’s success reflects broader trends shaping Africa’s digital transformation, including rising smartphone penetration, fintech innovation, and growing internet access.
As Kenya continues embracing digital finance and cashless transactions, Safaricom appears well-positioned to maintain its market leadership.
Conclusion
Safaricom’s record Sh99.7 billion profit is more than just a corporate milestone — it is a clear sign of how digital technology and mobile money are reshaping Africa’s economy.
With M-Pesa continuing to dominate mobile financial services, strong growth in mobile data usage, and improving performance in Ethiopia, Safaricom has evolved far beyond a traditional telecom company.
The company now stands as one of Africa’s most influential technology and fintech powerhouses, driving financial inclusion, digital innovation, and economic growth across the region.
