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East Africa’s biggest company, Safaricom Plc, has reported its strongest annual performance on record, driven by mobile money and data demand as its expansion in Ethiopia narrowed losses and boosted overall growth.

The Kenyan telecommunications operator said net income rose 67.3 per cent to Sh99.7 billion, marking the highest profit ever recorded by a company in East and Central Africa.

As a result, the firm has declared a dividend payout of Sh2 per share, totalling Sh80.1 billion, representing a 66.7 per cent increase from the previous year.

This comprises an interim dividend of 85 cents per share, and a recommended final dividend of Sh1.15 per share, subject to shareholder approval, underscoring the company’s resilient balance sheet and confidence in its long‑term growth outlook.

“We have shown strong execution in the first year of our five-year strategy, signalling a great setup for delivering our vision,’’ Safaricom Group CEO, Peter Ndegwa said.

“We delivered the strong performance, with acceleration in the second half, surpassing Group guidance with outstanding Kenya performance offsetting the impact of currency reforms and the timing of market repair actions in Ethiopia.”

The announcement saw the firm's share price at the Nairobi Securities Exchange (NSE) rise by close to eight per cent or Sh2.40, trading at Sh32.35 just moments before the close of trading day.

The positive sentiment extended to the broader market, largely driven by Safaricom’s outsized influence on the index. The NSE All Share Index (NASI) climbed 2.8 per cent on Friday, closing above 140 points. This surge increased the total market capitalization to Sh3.5 trillion, up from Sh3.41 trillion in the previous trading session.

The company’s service revenue increased 10 per cent to Sh414 billion as usage of mobile money and internet services expanded across its markets.

Momentum strengthened in the second half, with service revenue rising 10.7 per cent year on year compared with 9.3 per cent in the first half.

M-Pesa remained the main growth engine, accounting for 59.2 per cent of incremental revenue.

The Group’s profit before tax increased 36.1 per cent to Sh126.8 billion.

The mobile money platform grew by 13.4 per cent year-on-year and lifted its share of total revenue to 45.6 per cent, equivalent to Sh182.7 billion, underlining the continued dominance of mobile money services in the group’s earnings.

Earnings per share rose 37.4 per cent to Sh2.39, while cash generated from operations increased 21.6 per cent to Sh223.4 billion.

Connectivity revenue, Safaricom’s largest segment, rose 6.9 per cent, supported by a 14.4 per cent increase in mobile data usage.

Fixed services climbed 12.2 percent, driven by growth in consumer demand.

Earnings before interest and taxes rose 15.3 per cent to 182.3 billion, while total earnings increased 24.7 per cent to Sh118.3 billion.

The Kenya business remained the group’s main profit engine, with net income rising 24.7 per cent year-on-year to Sh119.1 billion.

Safaricom also reduced losses in Ethiopia by half, helping offset heavy upfront investment costs in the market, where it has deployed more than Sh134.9 billion.

“This is a major milestone for Safaricom. Our dividend payout has risen above the levels recorded before Covid-19 and before our Ethiopia investment,” Ndegwa said.

He disclosed that the firm achieved the payout despite expanding its operations in Ethiopia without increasing its debt levels.

The telco reached a total of 71.6 million customers across the Group, reflecting continued trust in the brand and strong demand for digital connectivity and financial services.

Safaricom Plc board chairman Adil Khawaja told investors that the results reflect a business that continues to demonstrate resilience and momentum.

“We have sustained strong growth in service revenue, driven by double-digit growth in Kenya and accelerated growth in Ethiopia, while maintaining profitability despite continued investment in Ethiopia.”

He added that the firm has started to witness the benefits of scale in Ethiopia, with improved commercial momentum and narrowingstart-up costs.

This balance, growth, investment, and discipline is exactly what the board expects at this stage of our journey,” Khawaja said.

According to the financial results, Safaricom Ethiopia continued its growth momentum, contributing 12.5per cent to the Group’s service revenue growth during the year.

Subscriber numbers in Ethiopia increased to 13.6 million customers, supported by a stronger network now covering 60 per cent of the population with 3,504 sites.

M‑Pesa adoption in Kenya also accelerated, with 41 million active customers generating a total of Sh182.7 billion in revenue during the year under review.

Guided by its purpose of transforming lives, the firm continued to invest in social impact initiatives across Kenya and Ethiopia.

Through the Safaricom and M‑Pesa Foundations, over 4.4 million lives were transformed during FY26 through programmes focused on education, health, and economic empowerment.

“We continue to invest in our network and IT systems to support capacity upgrades and user experience. Ethiopia's performance shows reduced losses relative to the previous period, greatly boosting Group performance,’’ Safaricom Group chief finance officer, Dilip Pal said.

According to Ndegwa, the company’s performance reflects its long-term strategy of innovation and inclusion as it marked 25 years of operations.

“As we marked 25 years of Safaricom’s service and impact, we reflected on the journey shared with our customers, partners and communities, connecting people and businesses, enabling opportunity, and making everyday moments easier,” Ndegwa said.

“Building on this legacy, we will continue to innovate for inclusion, scaling solutions such as Ziidi Trader, while deepening our community impact through Citizens of the Future, our flagship education programme supporting the next generation.”