KENYA · ETHIOPIA · TELECOMS
Key Facts
- The country Safaricom, Kenya’s market leader, owns about 54% of its Ethiopian operator.
- The background Safaricom won Ethiopia’s first private telecom licence in 2021, ending state-run Ethio telecom’s monopoly.
- What happened In the six months to 30 September 2026, Safaricom’s Ethiopia unit raised about US$192 million (KSh 25 billion).
- How big Total funding, equity plus debt, now stands near US$2.84 billion (KSh 369.2 billion), up about 7% since March.
- The catch About 54% in September, against 54.17% in March, so control has not changed.
- What comes next Safaricom targets break-even before interest, tax and depreciation in Ethiopia by March 2027.
Safaricom, Kenya’s market leader in mobile phone services, still owns about 54% of its Ethiopian business after that unit took in about US$192 million (KSh 25 billion) of new funding in the six months to 30 September 2026. The figures come from the company’s half-year disclosures, released on Thursday 5 November, and they show a group of partners that keeps investing alongside Safaricom.
Cumulative funding of Safaricom Telecommunications Ethiopia, equity plus debt, now stands near US$2.84 billion (KSh 369.2 billion). That is about 7% above the US$2.65 billion (KSh 344.1 billion) at the end of March, with all shilling amounts converted at the Central Bank of Kenya rate of KSh 129.91 per US dollar posted on 6 November.
Where the Money Comes From
Shareholder equity makes up about US$2.37 billion (KSh 307.6 billion) of the total, and debt the remaining KSh 61.6 billion (US$474 million). Debt is therefore about 17% of the total.
Part of the debt is in foreign currencies and part in Ethiopian birr. The business must therefore earn enough to service loans while the birr remains under pressure.
The partners in the Ethiopian business are Safaricom, Vodacom Group, Japan’s Sumitomo Corporation, British International Investment and the International Finance Corporation. The last two are development-finance institutions, the British government’s investment arm and the private-sector lending arm of the World Bank Group.
What Happened to the Stake
Safaricom’s stake was 54.17% at the end of March 2026, up from 51.67% a year earlier. It stands at about 54% after the latest funding, so control of the unit has not changed hands.
The Business Behind the Funding
Safaricom Telecommunications Ethiopia grew service revenue 71.6% to KSh 10.62 billion (US$82 million) in the half-year, according to the results Safaricom filed with the Nairobi Securities Exchange. Customers active in the past 90 days rose 38.4% to 15.43 million.
The same filing describes Ethiopia’s economy as challenging, citing inflation and continued currency pressures. It adds that increasing regulatory clarity gave the business a more supportive backdrop.
The company says it still aims for break-even at the EBITDA level by March 2027, which means earnings before interest, tax, depreciation and amortisation. That is not the same as profit, because interest, depreciation and tax still have to be paid.
What It Means for US Readers
Safaricom shares trade on the Nairobi Securities Exchange, not in New York, so US exposure comes through emerging-market funds or direct trading in Nairobi. The Ethiopian unit is the company’s biggest growth bet, and its funding needs shape how much cash Safaricom can return to shareholders.
The shift toward debt matters for risk, because foreign-currency loans must be repaid in hard currency while the unit earns birr. Investors should read the 54% figure as a sign of steady control, not as a sign the funding burden has eased.
What Is Not Known
Safaricom has not said how much debt its Ethiopian unit will carry after March 2027, and its half-year filing does not cover it. Finance chief Dilip Pal can answer when Safaricom publishes full-year results, which came in May this year.
Whether the unit reaches break-even before interest, tax and depreciation by March 2027 is not yet known. Safaricom’s management can answer at the full-year results expected around May 2027.
Frequently Asked Questions
Who owns Safaricom’s Ethiopian business?
Safaricom owns about 54%, with Vodacom Group, Sumitomo Corporation, British International Investment and the International Finance Corporation holding the rest. The venture operates as Safaricom Telecommunications Ethiopia.
How much has been invested in total?
Cumulative funding, equity plus debt, stands near US$2.84 billion (KSh 369.2 billion) at 30 September 2026. Equity is about US$2.37 billion and debt about US$474 million.
Is Safaricom’s Ethiopian business profitable?
Not yet. Safaricom targets break-even at the EBITDA level, before interest, tax, depreciation and amortisation, by March 2027.
Did Safaricom lose control of the Ethiopian unit?
No, Safaricom still owns about 54%, a majority of the unit. Its stake was 54.17% at the end of March 2026.
Which exchange rate is used here?
Kenyan shilling amounts are converted at the Central Bank of Kenya rate of KSh 129.91 per US dollar posted on 6 November 2026. Safaricom’s own dollar tables, which use other dates, show US$193 million of new funding.
Sources: Safaricom Plc, condensed unaudited results for the six months ended 30 September 2026, filed with the Nairobi Securities Exchange (nse.co.ke); Central Bank of Kenya, indicative exchange rate posted 6 November 2026 (centralbank.go.ke). Retrieved 7 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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