Safaricom posts $570.7 million profit as Ethiopia expansion drives growth in 2026

Safaricom, East Africa’s largest telecom operator, led by Kenyan tycoon Peter Ndegwa, reported a sharp rise in annual profit, which exceeded $570 million, following strong growth in its Ethiopian operations and sustained expansion of its M-PESA mobile money business, which lifted group revenue to $3.31 billion.

The performance underscores Safaricom’s growing regional footprint as Ethiopia begins contributing meaningfully to revenue growth, helping offset currency pressures and intensifying competition in East Africa’s telecom sector.

Ethiopia business accelerates growth

The Nairobi-based telecom giant posted profit attributable to shareholders of Ksh95.61 billion ($740.3 million) for the year ended March 2026, up 37% from Ksh69.8 billion a year earlier. Group profit after tax climbed to Ksh73.68 billion ($570.7 million), while total revenue increased 11% to Ksh427.56 billion ($3.31 billion).

Growth was driven by double-digit expansion in Kenya and rapid customer acquisition in Ethiopia, where the company is scaling operations after entering Africa’s second-most populous nation. Service revenue from Ethiopia rose 58.3% year-on-year to Ksh14.08 billion ($109 million), excluding hyperinflation accounting impacts. The unit’s 90-day active customer base climbed 54.2% to 13.63 million users, while monthly active customers rose 48.3% to 10.75 million.

Mobile data accounted for 67.9% of Ethiopia’s service revenue, highlighting rising smartphone and internet adoption in the country. Voice revenue more than doubled to Ksh3.01 billion ($23.3 million). Safaricom said Ethiopia’s 4G population coverage reached 59.2% during the fiscal year as the operator expanded network infrastructure and increased commercial rollout.

Despite the growth, the company flagged headwinds from the Ethiopian birr’s depreciation, which weakened 23.7% against the U.S. dollar during the year.

M-PESA strengthens dominance in Kenya

In Kenya, M-PESA remained Safaricom’s biggest earnings driver, contributing 45.6% of service revenue. M-PESA revenue rose 13.4% to Ksh182.7 billion ($1.41 billion), supported by increased customer activity and merchant adoption across its payments ecosystem, including Pochi La Biashara and Lipa na M-PESA. Transaction volumes climbed 25.1% to 46.41 billion, while transaction value increased 8.9% to Ksh41.68 trillion ($322.7 billion).

Safaricom also expanded its wealth management offerings through the launch of Ziidi Trader, enabling customers to trade listed securities directly via mobile phones. The telecom operator’s merchant network grew 71% to 3.1 million, reinforcing M-PESA’s role in Kenya’s digital finance infrastructure.

Data and broadband business expands

Connectivity revenue increased 6.9% to KSh197.9 billion ($1.53 billion), with mobile data becoming the largest contributor after overtaking voice services.

Mobile data revenue rose 14.4% to Ksh83.35 billion ($645.5 million), driven by rising smartphone penetration and migration to 4G and 5G networks. Fixed broadband and enterprise connectivity revenue increased 12.2% to KSh20.2 billion ($156.4 million), supported by growing demand for fiber-to-home and enterprise internet services. Safaricom’s fiber customer base expanded 35% to more than 407,000 subscribers, reflecting rising demand for Africa broadband services as households and businesses accelerate digital adoption.

Dividend payout jumps

Safaricom proposed a final dividend of Ksh1.15 per share, bringing total FY26 dividends to Ksh2 per share, up from Ksh1.2 a year earlier. Total dividend payouts for the year reached Ksh80.13 billion ($620.4 million), reinforcing the company’s commitment to shareholder returns despite heavy investment in Ethiopia.

Safaricom’s results highlight the growing importance of cross-border telecom expansion in Africa as operators seek new growth markets beyond saturated domestic businesses. The company’s Ethiopia strategy mirrors broader regional investment trends in digital infrastructure, mobile finance and Africa broadband connectivity, sectors increasingly attracting international investors and development finance institutions.