Safaricom PLC has declared a record interim dividend of Kshs 0.85 per share for FY2026, representing a 54.5% increase from last year’s Kshs 0.55, following its strongest half-year financial performance on record. The announcement triggered a sharp rally in the company’s shares, which rose 4.4% to close at Kshs 31.95 after touching an intraday high of Kshs 32.50, the highest level since August 2022. Trading activity was heavily concentrated in the stock, with 19.2 million shares valued at Kshs 614.1 mn changing hands, accounting for nearly half of total equity turnover for the session. At its intraday peak, Safaricom’s market capitalisation briefly exceeded USD 10.1 bn, making it the only company in Kenya and the Central and Eastern Africa region to cross that threshold twice, first in 2021 and again in 2026. The book closure date is set for 25 February 2026, with payment expected on or around 31 March 2026, reflecting management’s confidence in cash generation despite continued heavy network investment, including in Ethiopia. By market close, Safaricom was valued at Kshs 1.3 tn (USD 9.9 bn).
The enhanced dividend was supported by a step-change in profitability for the six months ended 30 September 2025. Net profit surged 52.1% to Kshs 42.8 bn, the highest interim earnings in Safaricom’s history, while EBITDA increased 34.9% to Kshs 101.3 bn as margins improved on a growing digital revenue mix. For the first time, mobile data revenue of Kshs 44.5 bn overtook voice revenue of Kshs 41.1 bn, confirming Safaricom’s transition to a data-led business. Group service revenue rose 11.1% to Kshs 199.9 bn, driven by higher data usage and wider smartphone adoption. M-PESA remained the core growth engine, with revenue rising 14.0% to Kshs 88.1 n and transaction volumes increasing 26.5% to 21.9 bn. Total customers expanded by nearly 20.0 to 63.2 mn, strengthening the base for monetising data and fintech services.
Regionally, Safaricom Kenya continued to anchor performance, with service revenue growing 9.3% to Kshs 192.1 bn and net income rising 22.9% to Kshs 59.1 bn, effectively funding the higher dividend payout. Ethiopia, however, remained in an investment phase despite rapid customer growth. By December 2025, three-month active subscribers reached 12.2 mn, up 71.7% year on year, while one-month active users rose 70.4% to 9.6 mn. Although nine-month service revenue increased 54.2% to Kshs 9.7 bn, heavy network rollout costs and currency depreciation kept the operation loss-making. Safaricom maintained its full-year EBIT guidance of Kshs 144–150 bn, signaling confidence that earnings momentum will persist through the rest of the financial year.
