Safaricom net income jumps 10.8pc to Sh69.8bn, first in East and Central Africa

Safaricom has reported a 10.8 per cent rise in net income to Sh69.8 billion for the year ending Monday, March 31, as total revenue surged past $3 billion (Sh390 billion) — the first time any company has hit that level in East and Central Africa.

The company said the growth was driven by innovation across products, expansion in Ethiopia and Sh18 billion invested in community projects over five years.

Safaricom will pay Sh48.08 billion in dividends, adding a final dividend of 65 cents per share to the interim payout of 55 cents.

“We have delivered excellent group performance with double-digit growth on both top and bottom line,” said Chief Executive Officer Peter Ndegwa.

“This strong set of results reflects the dedication of our teams, the loyalty of our customers and the strength of our strategy,” he added.

Earnings before interest and taxes jumped 29.5 per cent to Sh104.1 billion.

Ethiopia now brings in nearly 10 per cent of total revenue, with management saying the business has moved beyond peak investment and aims for profitability by 2027.

Safaricom Ethiopia has more than doubled its customer base to 8.8 million, with 2.8 million using M-PESA services, transacting Sh20.6 billion over the period.

In Kenya, service revenue rose 10.5 per cent to Sh364.3 billion. M-PESA, which turned eighteen last year, delivered Sh161 billion or 44.2 per cent of local service revenue, boosted by moves into wealth management and credit.

Mobile data revenue grew 15.2 per cent to Sh72.9 billion, while voice revenue rose 1.6 per cent to Sh80.8 billion.

“This year’s results are more than a reflection of past performance; they are a foundation for our vision of becoming Africa’s leading purpose-led tech company by 2030,” Ndegwa explained.

“We are entering a new phase of growth, and we will continue harnessing innovation for social good and shaping the future of Kenya, Ethiopia and beyond,” he said.