Safaricom Plc has raised its total dividend by 66.7 percent to Sh2 per share for the year ended March 31, 2026 after posting a 67.3 percent rise in net profit to Sh99.7 billion, driven by strong M-Pesa growth in Kenya and sharply reduced losses in Ethiopia.
The proposed payout comprises a final dividend of Sh1.15 per share, adding to the interim dividend of Sh0.85 paid earlier this year. Total shareholder payouts for the period stand at Sh80 billion.
This marks a sharp increase from the previous financial year when Safaricom paid a total dividend of Sh1.20 per share, comprising a final payout of Sh0.65 and an interim dividend of Sh0.55.
The company’s profitability in Kenya rose by 24.7 percent to Sh119.7 billion, largely supported by growth in revenues from its mobile money service, M-Pesa.
M-Pesa revenues in Kenya rose by 13.4 percent to Sh182.7 billion, anchoring the strong performance in the domestic market.
The growth in M-Pesa revenues has been supported by the platform’s expansion into new services, including personal savings and stock trading on the Nairobi Securities Exchange (NSE) through Ziidi Trader.
Data boost
Connectivity revenues – comprising mobile data, voice calls and messaging – rose by 6.9 percent to Sh197.9 billion during the period, supported mainly by mobile data growth as voice revenues expanded at a slower pace and messaging revenues declined.
“Mobile data continues to power the connectivity business as voice remained resilient,” said Dilip Pal, Safaricom chief finance officer.
Fixed service revenues, representing Safaricom’s fibre-to-home business, rose by 12.2 percent to Sh20.2 billion.
Ethiopia path
Safaricom more than halved its losses in Ethiopia to Sh21.2 billion, supported by an improved macroeconomic environment and tariff reviews on voice and data services implemented in late 2025.
The telecommunications operator said it remains optimistic about breaking even in Ethiopia by March 2027.
“The Ethiopia business has a clear trajectory towards break-even supported by healthier industry dynamics,” said Peter Ndegwa, Safaricom Plc chief executive officer.
kmuiruri@ke.nationmedia.com
