By The Weekly Vision Business Desk
Safaricom’s full-year results for the year ended 31 March 2026 continue to attract attention more than two months after they were announced, with investors and analysts examining the telecom giant’s record financial performance, executive remuneration and growing economic influence.
The results, first released on 7 May, marked the strongest performance in Safaricom’s 25-year history, driven by robust growth in its Kenyan business and a significant improvement in its Ethiopian operations. Group net profit attributable to shareholders rose by 67.3 per cent to a record KSh99.7 billion, while service revenue exceeded KSh400 billion for the first time, increasing 11.1 per cent to KSh414.1 billion.
Group EBITDA rose 35.4 per cent to KSh220.5 billion, lifting the EBITDA margin to 51.5 per cent, the first time it has exceeded 50 per cent since Safaricom entered the Ethiopian market. Basic earnings per share reached a record KSh2.39.
The board approved a total dividend of KSh2.00 per share, comprising an interim dividend of KSh0.85 and a final dividend of KSh1.15. The combined shareholder payout of KSh80.13 billion represents the largest dividend in the company’s history.
Safaricom’s Kenyan operations continued to generate the bulk of the group’s earnings. Domestic service revenue increased by 10 per cent to KSh400.8 billion, while net profit from the Kenyan business rose 24.7 per cent to KSh119.1 billion.
Group Chief Executive Officer Dr Peter Ndegwa described the year as one that delivered strong double-digit growth across virtually every key performance indicator, an uncommon achievement for a company of Safaricom’s size and maturity.
M-PESA remained the group’s largest growth driver. The mobile money platform generated KSh182.7 billion in revenue, a 13.4 per cent increase from the previous year, accounting for 45.6 per cent of Safaricom Kenya’s service revenue. During the year, M-PESA processed 46.4 billion transactions worth KSh41.68 trillion, underscoring its central role in Kenya’s financial system.
The merchant network expanded by 71 per cent to 3.1 million businesses, largely driven by adoption of the Pochi la Biashara platform, while monthly active customers grew 14.5 per cent to nearly 41 million.
Safaricom also reported that 17.1 billion low-value transactions were processed free of charge through its Kadogo programme, while assets under management across its wealth management products exceeded KSh21 billion following the launch of Ziidi Trader.
Safaricom Ethiopia delivered its strongest performance since launching operations. Start-up losses narrowed by 41.2 per cent to KSh21.2 billion, while service revenue rose 58.3 per cent to KSh14.1 billion. The turnaround accelerated during the second half of the financial year after Ethiopian regulators approved revised tariffs, boosting voice and data revenues.
The subsidiary’s active customer base grew to 13.6 million, while M-PESA Ethiopia more than doubled its active users to 5.2 million across approximately 70,000 merchants.
Capital expenditure in Ethiopia is expected to fall significantly during the current financial year as the network rollout nears completion.
Dr Ndegwa said management’s priority for FY2027 is to achieve EBITDA break-even while continuing to expand both mobile and financial services. Safaricom estimates that its operations contribute approximately 5 per cent of Kenya’s Gross Domestic Product and support more than 1.3 million livelihoods through its network of agents, merchants, suppliers, distributors and technology partners.
The company also disclosed that the Government of Kenya has received an estimated KSh242.3 billion over the past 18 years through dividends, taxes and other economic contributions, highlighting the value of its long-term investment in the company.
Safaricom’s annual report also revealed higher executive remuneration. Dr Ndegwa’s total compensation increased to KSh324.5 million during the financial year, up from KSh294.2 million in the previous year, making him the highest-paid chief executive of a company listed on the Nairobi Securities Exchange.
Chief Finance Officer Dilip Pal received total remuneration of KSh147.5 million, compared with KSh132.5 million the previous year. The company further disclosed that senior executives received approximately 20.1 million shares worth about KSh707.5 million under its Employee Performance Share Award Plan. Safaricom said executive remuneration is determined through independent benchmarking undertaken by PricewaterhouseCoopers.
Despite its strong financial performance, Safaricom continues to face regulatory scrutiny. The company secured a 25-year operating licence renewal from the Communications Authority of Kenya during the year, removing a significant source of uncertainty.
However, debate continues over whether M-PESA should be structurally separated from Safaricom’s telecommunications business and subjected to a different regulatory framework.
Competitors, including Airtel Kenya and Telkom Kenya, have argued that Safaricom’s dominance in mobile communications and mobile money warrants closer regulatory oversight. Safaricom has consistently maintained that its market position reflects sustained investment and innovation rather than anti-competitive conduct.
Looking ahead, Safaricom plans to strengthen M-PESA’s market leadership, deepen convergence between its telecommunications and financial services businesses, and expand the use of artificial intelligence across its operations.
For investors, the FY2026 results reinforce Safaricom’s position as one of Kenya’s most valuable listed companies. The improving performance of its Ethiopian business provides an additional growth engine, although regulatory developments surrounding M-PESA and the impact of new taxes affecting digital payment services will remain key issues to watch during FY2027.
