Safaricom Group Service Revenue Tops $3.2B

Why It Matters

The earnings surge underscores Safaricom’s ability to scale in both mature and frontier markets, reinforcing its position as East Africa’s leading telecom and mobile‑finance platform.

Key Takeaways

• Service revenue up 11.5% to $3.2 billion, driven by Kenya and Ethiopia
• Ethiopia revenue surged 86.6% to $109 million, narrowing operating loss
• M‑Pesa contributed 45.6% of Kenya service revenue, up 1.4 points
• Dividend increased 66.7% to $620 million, 2 shillings per share
• Vodacom seeks $2.1 billion stake acquisition pending approval

Pulse Analysis

Safaricom’s 2026 results illustrate how a telecom operator can thrive amid divergent market conditions. In Kenya, a stable macro environment—sub‑5% inflation and 5% GDP growth—supported double‑digit revenue expansion and solid profit margins. Meanwhile, the Ethiopian venture, launched in 2022, moved from market entry to early scale, delivering an 86.6% revenue surge and cutting its operating loss by roughly a third despite currency volatility. This dual‑track growth demonstrates the group’s disciplined investment model and its capacity to generate cash flow while building a foothold in a high‑growth African economy.

The financial narrative is equally compelling. Group operating profit rose 40% to $1.14 billion, and the dividend payout jumped 66.7% to $620 million, signaling confidence in cash generation. Mobile‑money leader M‑Pesa continued to dominate, with revenue up 13.4% to $1.4 billion and its share of Kenyan service revenue climbing to 45.6%. The launch of Ziidi Trader expands the platform into securities, positioning Safaricom to capture a broader slice of the continent’s emerging wealth‑management market. These moves reinforce the telco’s diversification beyond voice services into high‑margin digital finance.

Looking ahead, Safaricom’s strategy hinges on scaling M‑Pesa’s ecosystem, leveraging AI for customer experience, and optimizing network efficiency. The pending $2.1 billion Vodacom stake acquisition could reshape ownership dynamics and provide additional capital for network upgrades. With Ethiopia’s GDP expanding at 9.2% and telecom infrastructure now covering 60% of the population, the country is poised to become a “second growth engine” for the group. Investors will watch how Safaricom balances capital‑intensive expansion with profitability, especially as regulatory reforms and currency pressures evolve across the region.