Safaricom PLC reported a 72.5 per cent increase in half-year profit after tax to Ksh50.35 billion for the six months ended September 30, 2026, supported by strong performance in Kenya and a significant reduction in losses at its Ethiopian subsidiary.
The consolidated Group profit after tax rose from Ksh29.19 billion in the corresponding period last year, according to financial results released on Thursday. Profit before tax climbed to Ksh81.33 billion from Ksh55.24 billion, while total revenue increased to Ksh233.73 billion from Ksh204.71 billion.
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.”
Group service revenue grew 13.1 per cent to Ksh226.06 billion, supported by sustained momentum in Kenya and continued investment in Ethiopia. The directors noted: “HY27 reflects another period of strong execution and resilient growth across the Group. Service revenue increased 13.1% YoY to KShs 226.0B, supported by sustained performance in Kenya and continued investment in Ethiopia.”
M-PESA recorded revenue of Ksh100.1 billion during the six-month period, crossing the Ksh100 billion mark for the first time in a half-year period. This represented a 13.6 per cent increase, with the mobile money platform processing 27.4 billion transactions valued at Ksh23.6 trillion.
The milestone performance was supported by growth in M-PESA’s customer base, transaction volumes and merchant network. The directors’ report detailed: “Kenya service revenue grew 11.3% to KShs 215.9B, supported by continued momentum across M-PESA, connectivity and fixed services.
M-PESA revenue reached KShs 99.7B, contributing 46.2% of service revenue, supported by 7.0% growth in the customer base to 37.3M, transaction value increased 16.6% to KShs 23.56T, while the merchant ecosystem expanded 9.3% to 1.1M merchants.”
The financial services segment recorded particularly strong growth, increasing 55.3 per cent to Ksh7.1 billion, reflecting increased adoption of services available through the platform.
Under its Fintech 2.0 strategy, Safaricom advanced capabilities across wealth, credit and merchant services. The directors highlighted: “Under Fintech 2.0, we advanced capabilities across wealth, credit and merchant services, including the launch of the Zidi SHAP Mercantile Fund, a Shari’ah-compliant investment solution accessible through the M-PESA platform.”
The company also expanded payment and digital security features through innovations including “Tap-to-Pay, QR, and scan-to-pay capabilities, digital onboarding and biometric SIM swaps, further strengthening security, efficiency and the evolution of an integrated digital ecosystem.”
Safaricom Kenya recorded service revenue growth of 11.3 per cent to Ksh215.9 billion, with earnings before interest and tax surpassing Ksh100 billion for the first time in a six-month period.
The directors reported: “EBIT margin improved from 45.8% to 47.7%, while Net Income grew 13.3% to KShs 81.2B. Earnings per share (EPS) grew to 1.47. Income before tax grew 13.3% to KShs 56.6B.”
Group CEO Peter Ndegwa attributed the performance to sustained execution across the company’s businesses and continued progress in Ethiopia.
“We remain firmly focused on delivering our Vision 2030 ambition of becoming Africa’s leading purpose-led technology company,” Ndegwa said.
“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.”
Safaricom Telecommunications Ethiopia maintained strong growth momentum, with service revenue increasing 71.6 per cent to Ksh10.62 billion. The directors’ report stated: “Safaricom Telecommunications Ethiopia maintained strong growth momentum, with service revenue increasing 71.6% YoY to KShs 10.62B, supported by robust customer acquisition, increased service adoption and a larger customer base.”
Losses before interest, tax, depreciation and amortisation decreased 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.
The Ethiopian business served 15.4 million three-month active customers and contributed 17 per cent of the Group’s service revenue growth.
Chairman Adil Khawaja said the results demonstrated the resilience of the business and its strategy.
“The results demonstrate the resilience of Safaricom’s business and the strength of our strategy,” he said. “Importantly, this growth remains anchored in our purpose of transforming lives, ensuring that the value we create is reflected not only in our financial performance but also in the opportunities we enable for our customers, shareholders and the communities we serve.”
The Group also continued to contribute to government revenues through duties and levies collected during the period. The directors reported: “The Group continued to be a major contributor to the revenues of the Government of Kenya, remitting KShs 75.1B in duties and levies during the period, bringing cumulative payments since incorporation to KShs 1.32Tr.”
Cash generated from operations rose to Ksh121.33 billion from Ksh92.32 billion, while net cash generated from operating activities increased to Ksh91.92 billion from Ksh64.74 billion. Closing cash and cash equivalents stood at Ksh40.54 billion.
Group earnings per share increased to Ksh1.45 from Ksh1.07, while the Company’s basic and diluted earnings per share rose to Ksh1.66 from Ksh1.47.
The Group’s EBITDA margin expanded 9.1 percentage points to 55.3 per cent, reflecting revenue growth and a reduction in Ethiopia’s start-up losses. Operating profit rose to Ksh91.14 billion from Ksh65.21 billion.
