Safaricom PLC, Kenya’s leading telecommunications provider and one of Africa’s most valuable companies, has declared a KSh 48.08 billion ($372.6 million) dividend for the financial year ended March 31, 2025. This announcement comes as the company, under the leadership of CEO Peter Ndegwa, crossed a major milestone—reporting over KSh 388.7 billion ($3.01 billion) in total revenue.
This impressive performance cements Safaricom’s position as not only a dominant player in the telecom space but also a resilient engine of shareholder value, despite regional expansion costs and macroeconomic challenges.
Strong Financial Performance in FY2025
Safaricom’s financial results for FY2025 highlight a company that is strategically evolving while maintaining solid fundamentals. The telco’s total revenue grew by 11.2% year-on-year, surpassing KSh 388 billion for the first time. Its net profit rose by 10.8% to KSh 69.8 billion ($540 million), further affirming the strength of its core operations and growth strategy.
This consistent growth enabled the board to recommend a final dividend of KSh 0.65 per share, following an interim dividend of KSh 0.55 per share paid earlier in the year. Combined, this brings the total dividend per share to KSh 1.20, translating into a record total payout of KSh 48.08 billion ($372.6 million) to shareholders.
According to Safaricom’s official statement, the dividend will be paid on or about August 31, 2025, to shareholders registered as of July 31, 2025.
Shareholder Value & Market Capitalisation Surge
One of the clearest indicators of investor confidence in Safaricom is its share price performance, which rose by 68.7% year-on-year by the end of June 2025. This robust rebound follows a difficult prior year when the company’s shares were weighed down by macroeconomic concerns and initial costs related to its Ethiopia expansion.
As a result of this surge, Safaricom’s market capitalisation surpassed KSh 1 trillion ($7.75 billion)—a milestone that few listed African firms can claim. This level of growth has not only rewarded long-term investors but has also reestablished Safaricom as a dominant blue-chip stock on the Nairobi Securities Exchange (NSE).
Peter Ndegwa’s Leadership and Strategic Direction
Appointed as Safaricom’s first Kenyan CEO in 2020, Peter Ndegwa has overseen a profound transformation of the company. His leadership has been marked by a careful balance between stable shareholder returns and forward-looking investment in new markets and technologies.
Ndegwa has led the company through turbulent global conditions—rising inflation, currency depreciation, and regional expansion risks—while keeping the business profitable. Safaricom’s venture into Ethiopia, Africa’s second-most populous nation, has been one of the boldest moves in its corporate history. While losses from the Ethiopian operations still weigh on consolidated results, they narrowed significantly in FY2025, down to KSh 23–26 billion, from KSh 61 billion the previous year.
Ndegwa has also been instrumental in driving Vision 2030, the company’s long-term growth strategy built around six pillars:
- Expanding inclusive 4G and 5G network access across Kenya and Ethiopia
- Deploying artificial intelligence (AI) and data analytics for hyper-personalised customer experiences
- Growing M-PESA into a comprehensive financial services ecosystem
- Achieving profitability in Ethiopia
- Leading digital transformation across Africa
- Connecting 2 million homes and businesses through fixed broadband and enterprise ICT services
Additionally, this strategic focus is gradually repositioning Safaricom as a tech-led digital lifestyle enabler, beyond its traditional telecom roots.
Read Also: Top SACCOs Offering Highest Dividends and Interest Rates
Dividend Payout Breakdown
Financial Metric | FY2025 Result |
|---|---|
Total Revenue | KSh 388.7 billion (~$3.01 billion) |
Net Profit | KSh 69.8 billion (~$540 million) |
Interim Dividend | KSh 0.55 per share |
Final Dividend | KSh 0.65 per share |
Total Dividend per Share | KSh 1.20 |
Total Dividend Payout | KSh 48.08 billion (~$372.6 million) |
Market Capitalisation (June 2025) | KSh 1 trillion (~$7.75 billion) |
Share Price Gain (YoY) | +68.7% |
What It Means for Investors
For institutional and retail investors alike, Safaricom’s consistent dividend policy offers a rare combination of growth and income. Despite the company’s heavy investments in Ethiopia and the volatile economic environment in 2024–2025, it has not only remained profitable but also increased shareholder returns.
With strong momentum behind its core services—especially M-PESA, mobile data, and cloud solutions—plus a deepening foothold in the Ethiopian market, Safaricom is building the foundations of long-term sustainable growth.
In Peter Ndegwa’s own words during the AGM:
“We remain focused on transforming lives, delivering consistent returns to our shareholders, and investing in the future of Africa’s digital economy.”
The Road Ahead
Looking forward, Safaricom’s key priorities include:
- Profitability in Ethiopia: With customer numbers rising and infrastructure expanding, Ethiopia could become a major profit center within the next 3–5 years.
- Innovation & Financial Inclusion: Expanding the reach of M-PESA into microloans, insurance, and investment services.
- AI-Driven Growth: Leveraging big data and AI to deliver better products, improve customer experience, and boost operational efficiency.
Final Thoughts
Safaricom’s $372 million dividend payout, on the back of record revenues and market cap growth, is a testament to the company’s solid fundamentals, visionary leadership, and strategic clarity. Under Peter Ndegwa, Safaricom is no longer just a telecom firm—it’s an African tech powerhouse with the ambition and capability to transform digital connectivity across the continent.
As the company continues to invest in future growth while rewarding investors today, Safaricom remains one of the most attractive and stable stocks in East Africa—and perhaps all of Sub-Saharan Africa.
