M-Pesa Africa has recorded its first operating profit since its establishment, underscoring the continued expansion of digital financial services across the continent. The joint venture between Safaricom and Vodacom has benefited from rising mobile money adoption, higher transaction volumes and the rollout of new financial products across multiple African markets. The improved financial performance highlights the growing role of digital payments in supporting financial inclusion while creating new revenue streams within Africa’s telecommunications industry.
According to the financial results for the year ended 31 March 2026, M-Pesa Africa Holdings Limited recorded a 104.1% improvement in performance, posting a net profit of KSh 102.5 mn compared to a net loss of KSh 2.47 bn in the previous financial year. During the same period, revenue increased by 20.6% to KSh 8.08 bn from KSh 6.70 bn in the financial year ended 31 March 2025. The growth reflects the continued expansion of the platform’s digital financial services across eight African markets, supported by a growing customer base served through Safaricom, Vodacom and Vodafone-licensed mobile network operators.
The turnaround reflects increasing adoption of digital financial services beyond traditional person-to-person money transfers. M-Pesa Africa generates income by licensing the M-Pesa brand and providing technology platforms, product development and managed services to participating mobile network operators. Under its managed services agreement, the company earns a recurring monthly fee equivalent to 2.0% of M-Pesa transaction revenue, creating a stable revenue model that benefits as transaction volumes continue to grow across its operating markets.
The return to profitability also follows strategic investments made after Safaricom and Vodacom acquired the M-Pesa brand from Vodafone in 2020. The acquisition enabled the two telecommunications companies to retain licensing income within the joint venture while supporting investment in new digital products and geographic expansion. In 2023, Safaricom further strengthened its position within the ecosystem through the acquisition of M-Pesa Holding Company Limited, enhancing oversight of the platform while supporting continued innovation and product development.
M-Pesa Africa’s improved performance coincided with continued growth in Safaricom Kenya’s mobile money business, although the two entities report separate financial results. During FY2026, Safaricom Kenya’s M-Pesa revenue increased by 13.4% to KSh 182.7 bn from KSh 161.1 bn in FY2025. Over the same period, Safaricom Group’s net profit rose by 37.0% to KSh 95.6 bn from KSh 69.8 bn, supported by higher M-Pesa earnings and improved performance in Ethiopia. Losses from the Ethiopia business narrowed significantly to KSh 18.0 bn from KSh 57.8 bn, reflecting operational improvements as the subsidiary continued to expand its customer base and scale its operations.
The results demonstrate the increasing commercial value of digital financial services across Africa as mobile money evolves into a broader financial ecosystem offering payments, savings, lending and other value-added services. Growing transaction volumes, expanding digital products and wider customer adoption continue to strengthen the sector’s long-term growth prospects while reinforcing the importance of mobile money in promoting financial inclusion.
Overall, M-Pesa Africa’s return to profitability marks an important milestone in the evolution of Africa’s digital payments industry. With net profit improving to KSh 102.5 mn, revenue rising by 20.6% to KSh 8.08 bn, and operations spanning eight African markets, the platform is well positioned to benefit from the continued growth of digital financial services across the continent.
