Safaricom PLC has reported a 72.5 per cent surge in half-year net profit, driven by strong momentum in its Kenyan M-PESA and connectivity businesses and a sharp reduction in losses from its Ethiopian operations.
The company announced on Thursday that consolidated profit after tax for the six months ended September 30, 2026, rose to Ksh50.35 billion, up from Ksh29.19 billion in the same period last year. Profit before income tax climbed to Ksh81.33 billion from Ksh55.24 billion.
The results, published in the company’s HY27 financial statements, showed total revenue expanding to Ksh233.73 billion from Ksh204.71 billion, while service revenue grew 13.1 per cent to Ksh226.06 billion.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27.5 per cent to Ksh129.18 billion, with the EBITDA margin improving 9.1 percentage points to 55.3 per cent.
The directors’ report stated: “Group profitability remained resilient, with EBITDA growing 27.5% to Kshs 129.1B, EBITDA margin increasing 9.1ppts to 55.3% and Net Income excluding minority interest growing 35.9% to Kshs 58.2B.”
The Kenya business remained the group’s primary earnings engine. Kenya service revenue grew 11.3 per cent to Ksh215.9 billion, supported by continued momentum across M-PESA, connectivity and fixed services.
The Kenya unit’s EBIT margin improved from 45.8 per cent to 47.7 per cent, while net income rose 13.3 per cent to Ksh81.2 billion. Group earnings per share increased to Ksh1.45 from Ksh1.07.
The Ethiopian subsidiary delivered what management described as strong growth momentum. Service revenue in Ethiopia increased 71.6 per cent year-on-year to Ksh10.62 billion, supported by robust customer acquisition and a larger customer base.
Losses before interest, tax, depreciation and amortisation decreased significantly by 96.5 per cent to Ksh434.4 million, while operating loss before interest and tax declined 53.4 per cent to Ksh11.35 billion.
Group CEO Peter Ndegwa said the performance reflected strong execution across the businesses. “We remain firmly focused on delivering our Vision 2030 ambition of becoming Africa’s leading purpose-led technology company,” Ndegwa said in a statement accompanying the results.
“Our performance reflects strong execution across our businesses, while Ethiopia’s sustained growth and commercial momentum brings us closer to our target of achieving EBITDA break-even by the end of this financial year.”
The results also underscored Safaricom’s role as a major contributor to government revenue. The company remitted Ksh75.1 billion in duties and levies during the six-month period, bringing cumulative payments since incorporation to Ksh1.32 trillion.
Cash generation remained robust, with cash generated from operations rising to Ksh121.33 billion from Ksh92.32 billion, and net cash generated from operating activities reaching Ksh91.92 billion. Closing cash and cash equivalents stood at Ksh40.54 billion.
The strong profitability growth comes as Safaricom’s Ethiopian venture moves closer to covering its operating costs after years of heavy network investment. The operation, which now serves 15.4 million three-month active customers, contributed 17 per cent of the group’s service revenue growth during the period.
The narrowing losses in Ethiopia have been a key focus for investors since Safaricom expanded into the market, with management guiding for EBITDA break-even by the end of the current financial year.
The Ksh50.35 billion cited in this article represents the consolidated Group profit after tax, which is the headline figure reported in the condensed consolidated statement of profit or loss.
The directors’ statement separately references net income excluding minority interest of Ksh58.2 billion, which represents profit attributable to equity holders of the parent after excluding non-controlling interests.
Profit after tax for Safaricom PLC as an individual company, excluding its subsidiaries’ consolidated results, stood at Ksh66.60 billion.
