Safaricom's half year profits up 52% to Sh42.8 billion

Safaricom CEO Peter Ndegwa./HANDOUT

Safaricom Plc's net earnings for the first six months of the year grew by 52.1per cent to Sh42.8 billion on reduced losses in Ethiopia.

The telco recorded a service revenue of Sh200 billion, with the Kenyan subsidiary accounting for Sh194 billion, having expanded by 9.3 per cent.

Revenue from Ethiopia surged by a whopping 136 percent to hit Sh6.2 billion.

The Kenyan unit reported 22.6 percent growth in net profit to Sh52.8 billion, while Ethiopia reported Sh15.5 billion in net earnings, having grown 20.1 percent.

For the first time, mobile data revenue of Sh44.5 billion (+18.21% YoY) surpassed voice revenue at Sh41.1 billion, having risen by 0.5 per cent. 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 34.9 per cent to Sh101.3 billion from Sh75.1 billion in September 2024, reflecting improved margin conversion as revenue mix tilted toward higher-yield digital services.

“This is a strong set of results, and a solid start to our Vision 2030 strategy cycle, maintaining our FY26 guidance. We remain focused on executing our strategy through segment-led execution and integrated solutions,” said Peter Ndegwa, Group CEO, Safaricom.

The firm defied pricing and currency reform challenges in Ethiopia to cut losses by Sh15.5 billion.

The total value of Fuliza rose by 40 per cent in H1 2026, to Sh629.2 billion from Sh450 billion in the corresponding half of the previous year, meaning that customers accessed an additional Sh179.2 billion in just 12 months.

Safaricom Kenya accrued revenue of Sh2.6 billion in the period under review, representing a 34.9 percent increase compared to Sh2.2 billion in the six months to December.

Overall, Safaricom’s mobile wallet, M-Pesa, posted a 15 per cent growth in credit portfolio, with both total value and revenue rising by 30.9 and 14.2 per cent respectively to Sh777.5 billion and Sh4.5 billion.

Active Lipa Na M-Pesa merchants rose 32 per cent to 870,700, and Pochi la Biashara tills increased 73 percent to 1.5 million.

This saw the mobile wallet product contribute heavily to the Group’s service revenue, contributing Sh88.1 billion, a 14.1 per cent growth.

Generally, the Kenyan subsidiary posted a 22.6 per cent rise in net profit to Sh52.8 billion.

The company’s Ethiopian arm, which has been steadily expanding its network and mobile money operations, reported Sh15.5 billion in earnings — a 20.1 per cent increase.

The network reached 3,306 sites, covering 55 per cent of the population. Active customers reached 11.15 million, while M-Pesa adoption built early momentum with 3.4 million active users.

Mobile data remained the core revenue driver, contributing 66.7 per cent of Ethiopia service revenue.

Mobile data revenue increased to Sh4.13 billion, driven by higher smartphone availability and usage per customer.

The results mark a major turnaround for Safaricom Ethiopia, which has been reducing losses since its commercial launch in October 2022 amid heavy infrastructure investments.

The value of Ethiopia's currency has fallen massively against the US dollar since July last year after the government relaxed currency restrictions in a bid to secure a loan of $10.7 billion from the International Monetary Fund (IMF) and World Bank.

Under the new policy, the market sets the value of the Ethiopian currency -the birr.

This gave rise to a black FX market, widening the spread between pressure financial institutions and import-reliant businesses struggling to access foreign currency through formal channels.

Safaricom Ethiopia’s customer rose to 11.1 million during the period under review, 83.5 per cent growth compared to a similar period last year.

In addition to the strong set of results, the company continued to invest heavily in communities.

Safaricom recently launched the Citizens of the Future programme, an initiative set to benefit 500 schools with infrastructure upgrades, 10,000 scholarships and over 56,000 beneficiaries of digital literacy over the next five years.

“It has been 25 years of transforming lives, through innovation and community empowerment, a journey powered by purpose and collaboration. We have transformed the lives of over 22 million Kenyans through the Safaricom and M-PESA Foundations. We remain anchored in purpose, driving sustainable growth and positive change,” Ndegwa said.

Further, the company launched Safaricom Ethiopia Foundation in July this year, investing over ETB 650million in community projects under education, youth and economic empowerment, a demonstration of the company’s commitment to purpose before profit.