Safaricom PLC has reported a significant increase in profitability, with its net profit rising by 35.9 per cent to KSh58.2 billion during the first half of the 2026/2027 financial year. The growth was largely supported by strong performance in its Kenyan operations, increased revenue from M-Pesa and improved financial results from its Ethiopian business, which is gradually moving towards profitability. According to the company’s half-year financial results, total service revenue increased by 13.1 per cent to KSh226.1 billion. Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.5 per cent to KSh129.2 billion.
Safaricom Group Chief Executive Officer Peter Ndegwa attributed the improved performance to the company’s business strategy, increased customer numbers and higher service usage. Ndegwa noted that Safaricom had continued making its services more affordable while encouraging greater customer engagement and consumption.
Kenya Business Remains Safaricom’s Biggest Revenue Contributor
Kenya continued to account for the largest share of Safaricom’s earnings, recording service revenue of KSh216 billion, representing an 11.3 per cent increase. The company’s earnings before interest and tax (EBIT) in Kenya also surpassed KSh100 billion for the first time in a six-month reporting period, reaching KSh101.8 billion. M-Pesa remained a major contributor to the company’s financial growth, with revenue increasing by 13.6 per cent to KSh100.1 billion.
This marked the first time the mobile money platform had generated more than KSh100 billion in revenue within a six-month period. Safaricom Chief Finance Officer Dilip Pal said the company was expanding its existing financial services while exploring additional opportunities to address the changing financial needs of its customers. He noted that the company’s focus remained on providing solutions that cater to customers’ different financial requirements.
Safaricom Ethiopia Records Significant Improvement
Safaricom’s Ethiopian operation also recorded notable progress, with service revenue increasing by 71.6 per cent to KSh10.6 billion. The business had accumulated a customer base of 15.4 million, reflecting continued growth in the market. More importantly, losses in Ethiopia declined by 96.5 per cent to KSh434.4 million, bringing the operation closer to achieving its break-even target.
Pal said Safaricom would continue investing in Ethiopia, with future spending supported by the improving financial position and growing profitability of the business. He expressed confidence that the Ethiopian operation was moving beyond its initial investment phase and was becoming financially stronger.
Safaricom Outlines Plans for Second Half of Financial Year
Looking ahead, Safaricom plans to strengthen its broadband and digital services during the second half of the 2026/2027 financial year. The company also intends to increase the use of artificial intelligence across its operations while expanding its digital offerings.
In Ethiopia, Safaricom will continue working towards achieving break-even by the end of the financial year as it seeks to strengthen its position in the telecommunications market. The latest results highlight the company’s continued growth in Kenya and the improving performance of its Ethiopian business.
