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Safaricom FY2026 Earnings Rise on Strong M-Pesa Growth

Pauline Atieno by Pauline Atieno
July 5, 2026
in News
Reading Time: 2 mins read

Safaricom PLC delivered a strong financial performance for the financial year ended March 2026, reinforcing its position as one of the leading companies on the Nairobi Securities Exchange (NSE). The Group recorded higher revenue, improved profitability and stronger shareholder returns, supported by continued growth in Kenya’s mobile data and M-Pesa businesses, alongside encouraging progress from its Ethiopia operations.

According to the audited FY2026 financial results, Group service revenue increased by 11.5% to KES 414.1 billion. The Kenyan business remained the Group’s primary source of revenue with service revenue rising 10.0% to KES 400.8 billion. Growth was largely driven by increased demand for mobile data services and continued expansion of the M-Pesa ecosystem.

Mobile data revenue grew by 14.4%, reflecting sustained demand for digital connectivity among consumers and businesses. Meanwhile, M-Pesa revenue rose by 13.4% to KES 182.7 billion, highlighting the continued importance of digital financial services within Safaricom’s business model. M-Pesa now contributes 45.6% of domestic service revenue, demonstrating the platform’s evolution beyond traditional money transfers into a broader ecosystem that includes merchant payments, digital commerce  and financial services.

The Group also recorded a substantial improvement in profitability. Net income increased by 67.3% to KES 99.7 billion, reflecting stronger operating performance in Kenya as well as improving financial results from the Ethiopia business. The increase in earnings underscores Safaricom’s ability to generate sustainable cash flows while continuing to invest in long-term regional expansion.

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Although Safaricom Ethiopia remains in its investment phase, the subsidiary continued to make significant operational progress during FY2026. The higher dividend reflects improved profitability, stronger operating cash flows, and growing confidence in the Group’s long-term financial outlook.

The continued reduction in losses from the Ethiopia business is becoming an increasingly important factor in Safaricom’s growth strategy. As the subsidiary expands its subscriber base, increases mobile data usage, and moves closer to its targeted EBIT break-even in FY2027, it is expected to make a more meaningful contribution to Group earnings. Progress in Ethiopia also strengthens Safaricom’s regional diversification strategy by reducing its reliance on the mature Kenyan market over time.

Overall, Safaricom’s FY2026 results demonstrate resilient financial performance supported by robust revenue growth, expanding digital financial services and improving operational efficiency. Continued investment in M-Pesa, mobile data and regional expansion positions the company for sustained long-term growth while maintaining its role as one of the strongest dividend-paying companies listed on the Nairobi Securities Exchange.

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