KENYA · SAFARICOM HALF-YEAR RESULTS
Key Facts
- The country Kenya is home to Safaricom, the telecom group behind the M-Pesa mobile-money service.
- What happened On 5 November Safaricom reported half-year net income of KES 58.2 billion (US$448 million), up 35.9%.
- The turnaround Ethiopia’s EBITDA loss fell 96.5% to KES 434.4 million (US$3.3 million).
- The catch Safaricom targets Ethiopian EBITDA break-even by the end of its financial year, to March 2027.
- Growth Ethiopia has 15.4 million three-month active customers, up 38.4%; revenue KES 10.6 billion (US$82 million).
- Still open Whether Ethiopia reaches EBITDA break-even by March 2027; full-year results will show.
Safaricom, the Kenyan telecom group that runs the M-Pesa mobile-money service, said on Thursday 5 November that group net income for the six months to 30 September rose 35.9% to KES 58.2 billion (US$448 million). That period is the first half of its financial year to March 2027, which the company calls HY27.
Group service revenue, the sales from calls, data, payments and similar services, rose 13.1%, and Safaricom’s young Ethiopian business contributed 17% of that growth. Ethiopia also cut its loss sharply, and the company says it is moving towards break-even.
What Safaricom Reported
Group service revenue reached KES 226.1 billion (US$1.74 billion), and group EBITDA rose 27.5% to KES 129.2 billion (US$995 million). EBITDA means earnings before interest, tax, depreciation and amortisation, a measure of a business’s operating result.
M-Pesa, the phone-based payments and loans service, produced revenue of KES 100.1 billion (US$770 million), up 13.6%. In Kenya, service revenue grew 11.3% to KES 216.0 billion (US$1.66 billion), and earnings before interest and tax were KES 101.8 billion (US$784 million), up 13.7%.
Chief executive Peter Ndegwa said Safaricom remains focused on its Vision 2030 ambition of becoming Africa’s leading purpose-led technology company. Chairman Adil Khawaja said the results show the resilience of the business and the strength of its strategy.
Ethiopia Closes In on Break-Even
Safaricom’s Ethiopian unit cut its EBITDA loss by 96.5% to KES 434.4 million (US$3.3 million), and its service revenue rose 71.6% to KES 10.6 billion (US$82 million). The release says the business made significant progress towards breaking even.
The unit had 15.4 million three-month active customers, up 38.4%. Ndegwa said the growth “brings us closer to our target of achieving EBITDA break-even by the end of this financial year”.
Dividends and Shareholders
Safaricom said in a release dated 31 July that its FY26 dividend totals a record KES 80.13 billion (US$617 million), or KES 2.00 (US$0.0154) per share. That combines an interim KES 0.85 (US$0.0065) per share paid in March 2026 and a final KES 1.15 (US$0.0089) per share approved at the annual general meeting.
The HY27 results release does not mention an interim dividend for the current year. Shareholders will see whether the 35.9% profit rise and the Ethiopian improvement feed into the next payout.
What It Means for US Readers
US investors who hold Safaricom through emerging-market or frontier-market funds can watch two items: the Ethiopian break-even and the next dividend. Both will show how much of the profit rise is lasting.
M-Pesa revenue above KES 100 billion (US$770 million) in six months shows how large phone-based finance has become in East Africa. The release adds that 53% of all M-Pesa transactions were free or zero-rated, which US payments firms active in the region will note.
What Is Not Known
- Whether Ethiopia reaches EBITDA break-even by 31 March 2027 is not known. Safaricom’s full-year results, due after the year closes, will show it.
- The size and date of the next interim dividend are not known. Safaricom’s board can answer when it declares the payout.
Frequently Asked Questions
What is Safaricom?
Safaricom is a Kenyan telecom company that runs the M-Pesa mobile-money service. It also operates in Ethiopia, where its half-year service revenue reached KES 10.6 billion (US$82 million).
How much did Safaricom earn in the half-year?
Group net income was KES 58.2 billion (US$448 million), up 35.9%, for the six months to 30 September 2026. Group service revenue rose 13.1% to KES 226.1 billion (US$1.74 billion).
What is EBITDA?
EBITDA means earnings before interest, tax, depreciation and amortisation, a measure of a business’s operating result. Safaricom uses it to track when its Ethiopian unit stops losing money.
When will Safaricom’s Ethiopian unit break even?
Chief executive Peter Ndegwa says Safaricom is targeting EBITDA break-even by the end of the current financial year, which closes in March 2027. That is an operating measure, not a net profit.
Does Safaricom pay dividends?
Yes, it paid an interim KES 0.85 (US$0.0065) per share in March 2026 and approved a final KES 1.15 (US$0.0089), a total of KES 2.00 (US$0.0154) per share or KES 80.13 billion (US$617 million) for FY26. Safaricom described that as its highest-ever payout.
Sources: Safaricom Group HY27 results press release of 5 November 2026 and Safaricom press release on the FY26 dividend dated 31 July 2026, both at safaricom.co.ke. Conversions use the Central Bank of Kenya mean rate of KES 129.91 per US$1, posted on its website on 6 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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