Safaricom PLC delivered a strong financial recovery in FY2026, posting significant growth in profitability, shareholder returns, and operational efficiency amid continued expansion of its digital services ecosystem. The telecommunications giant recorded a 61.0% increase in Profit After Tax (PAT) to Kshs 73.7 billion, up from Kshs 45.8 billion in FY2025, underscoring the company’s ability to strengthen earnings despite a challenging operating environment.
The improved profitability was largely supported by a 27.9% increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), which rose to Kshs 220.3 billion from Kshs 172.2 billion in the previous financial year. The EBITDA growth reflected stronger operational performance, improved cost management, and sustained growth across key revenue streams.
Safaricom’s total revenue grew by 10.0% to Kshs 427.6 billion in FY2026, compared to Kshs 388.7 billion recorded in FY2025. The increase was primarily driven by an 11.5% growth in service revenue, which climbed to Kshs 414.1 billion from Kshs 371.4 billion. The expansion signals continued resilience in consumer demand for mobile connectivity, digital payments, and financial services.
A major driver of the company’s revenue performance remained M-PESA, whose revenue increased by 13.4% to Kshs 182.7 billion from Kshs 161.1 billion in FY2025. The mobile money platform continues to cement its position as Safaricom’s most strategic growth segment, reflecting the increasing digitization of payments, merchant transactions, savings products, and financial inclusion services in Kenya.
The stronger revenue growth was complemented by tighter cost controls. Operating costs declined by 4.3% to Kshs 207.3 billion from Kshs 216.5 billion in FY2025. The reduction in costs significantly improved the firm’s operating margins and contributed to the sharp rise in profitability. The decline also highlights Safaricom’s focus on operational efficiency and optimization following years of elevated spending linked to infrastructure expansion and regional growth initiatives.
Shareholders are also set to benefit from higher returns following the board’s recommendation of a final dividend of Kshs 1.15 per share, alongside an interim dividend of Kshs 0.85 per share already paid earlier in the year. This brings the total dividend payout for FY2026 to Kshs 2.0 per share, representing a 66.7% increase from the Kshs 1.2 distributed in FY2025.
The improved payout translated to a dividend yield of 6.7%, up marginally from 6.5% in the previous year, while the payout ratio increased by 14.4% to 83.3% from 69.0%. The higher payout ratio signals growing confidence in the company’s cash generation capacity and future earnings outlook.
Safaricom’s FY2026 results reinforce its dominance within Kenya’s telecommunications and fintech sectors, with digital financial services increasingly accounting for a larger share of earnings growth. The company’s ability to grow revenue while simultaneously lowering operational costs positions it strongly against rising competition and evolving consumer demands.
The results also highlight the growing importance of mobile money platforms in East Africa’s financial system, with M-PESA continuing to drive transaction volumes, customer retention, and profitability across the broader Safaricom business model.
