Safaricom Posts 35.9 Percent Net Income Surge as Ethiopia Operations Accelerate

Safaricom PLC has announced a strong financial performance for the six months ended 30th September 2026, with Group service revenue growing by 13.1 percent to KES 226.1 billion. The figures reflect sustained commercial momentum across both its established Kenyan market and its newer expansion in Ethiopia. Group Earnings Before Interest, Tax, Depreciation and Amortisation increased by 27.5 percent to KES 129.2 billion, while Group net income grew by 35.9 percent to KES 58.2 billion. According to the company, these financial outcomes demonstrate ongoing resilience and disciplined execution of its strategic vision under its current leadership.

In the primary domestic market, Safaricom delivered service revenue of KES 216.0 billion, which represents an increase of 11.3 percent. In a significant corporate milestone, the Kenyan business recorded Earnings Before Interest and Tax of KES 101.8 billion, surpassing the KES 100 billion threshold for the first time in a half-year reporting period. Concurrently, M-PESA revenue for the wider Group grew by 13.6 percent to reach KES 100.1 billion, also crossing the KES 100 billion mark for the first time in a six-month window. The company maintained customer-centric pricing strategies by keeping a substantial portion of consumer and merchant transactions free or zero rated during the reporting period.

Operations in Ethiopia recorded substantial expansion, with service revenue surging by 71.6 percent to KES 10.6 billion. The Ethiopian business now serves 15.4 million three-month active customers, capturing rising local demand for mobile connectivity and digital financial services. Ethiopia accounted for 17 percent of total Group service revenue growth. Furthermore, the Ethiopian subsidiary made measurable progress toward profitability, with its loss before interest, tax, depreciation and amortisation narrowing by 96.5 percent to KES 434.4 million, bringing the operation closer to its stated target of achieving EBITDA break-even by the end of the financial year.

Beyond core telecommunications and financial technology metrics, Safaricom maintained its focus on social impact and governance frameworks. During the half-year period, corporate foundations impacted over 1.5 million lives through structured health, education, and economic empowerment initiatives. Youth engagement programs also continued through initiatives such as the Safaricom Chapa Dimba football tournament. Group CEO Peter Ndegwa noted that the performance aligns with the long-term ambition of establishing the enterprise as a leading purpose-led technology company across the continent.

Why This Matters

The financial milestone achieved by Safaricom highlights the viability of scaling cross-border telecommunications and financial technology platforms within East Africa. Crossing the KES 100 billion threshold in both half-year EBIT for the Kenyan entity and half-year M-PESA revenue demonstrates the maturation of digital economies where mobile money functions as essential financial infrastructure. This structural depth provides the operational cash flow necessary for sustained capital expenditure in network densification, rural connectivity, and next-generation digital services.

The trajectory of the Ethiopian subsidiary offers critical insight into regional market entry strategies for major African operators. Navigating regulatory environments while scaling subscriber bases to over 15 million active users in a complex new market illustrates how large-scale telecommunications investments can progressively absorb initial capital expenditure headwinds. As the Ethiopian unit nears its EBITDA break-even target, the financial validation reinforces investor confidence in regional expansion models that prioritize long-term subscriber acquisition and foundational digital inclusion over immediate short-term returns.

Opportunities

• Fintech Integrators: Opportunities to build advanced merchant solutions and value-added services that plug directly into the expanding M-PESA ecosystem as transaction volumes cross new revenue thresholds.
• Infrastructure Contractors: Contracts for network expansion, site densification, and power resilience solutions required to support the rising data and voice traffic demands in both Kenya and Ethiopia.
• Institutional Financiers: Structured lending and capital deployment opportunities to support the ongoing capital expenditure requirements of cross-border telecom operators approaching operational break-even in emerging markets.
• Enterprise Technology Vendors: Partnerships to supply cloud, software, and digital platform capabilities tailored to corporate and small business customers across Safaricom's expanding regional footprint.

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