NAIROBI, Kenya — Safaricom PLC has reported a 67.3 P.c rise in net profit to Sh100 billion for the 2025/26 financial year, driven by strong growth in M-Pesa services, mobile data usage, and expanding operations in Ethiopia.
The telecommunications giant said service revenue increased by 10 P.c to Sh400 billion during the period, supported by higher customer activity across digital financial services and internet products.
Earnings before interest and taxes (EBIT) rose 15.3 P.c to Sh182 billion, while total earnings climbed 24.7 P.c to Sh119 billion, underscoring what the company described as one of its strongest financial performances in recent years.
Chief Executive Officer Peter Ndegwa attributed the growth to solid performance in both Kenya and Ethiopia.
“Kenya has delivered an outstanding performance, and Ethiopia has made a valuable contribution, together making this one of our strongest results yet,” Ndegwa said.
The results highlight the growing importance of Ethiopia in Safaricom’s regional expansion strategy following its entry into the Ethiopian telecommunications market, one of Africa’s largest untapped sectors.
Analysts say the company’s continued investment in mobile financial services and data infrastructure has strengthened its market dominance amid increasing digital adoption across East Africa.
M-Pesa remains a major revenue driver for the company, reflecting the central role of mobile money in Kenya’s economy. Increased smartphone penetration and demand for internet services also contributed significantly to the growth in customer spending.
Safaricom’s financial performance comes at a time when the regional telecom sector is undergoing rapid transformation, driven by fintech expansion, digital banking integration, and rising demand for connectivity.
The company has, in recent years, invested heavily in Ethiopia despite initial operational challenges linked to infrastructure rollout, foreign exchange constraints, and regulatory adjustments.
Industry observers view the improved Ethiopia contribution as a key milestone in Safaricom’s efforts to diversify revenue streams beyond the Kenyan market.
The strong earnings are also expected to reinforce investor confidence in the Nairobi Securities Exchange-listed company, which remains one of East Africa’s most profitable firms.
