Safaricom’s revenue surges to Sh388.7 billion

Safaricom has posted a notable 11.2% increase in total revenue, reaching Sh388.7 billion ($3 billion) for the financial year ending March 31, 2025.

The company’s strategic expansion and product diversification have been central to this achievement, marking another milestone in its transformation from a telecommunications company to a broader technology firm.

The financial results come with an announcement of a Sh48.08 billion dividend payout to shareholders.

This includes a final dividend of 65 cents per ordinary share, in addition to the interim dividend of 55 cents per share already disbursed earlier in the year.

In a statement on Friday, Safaricom’s CEO, Peter Ndegwa, attributed the success to sustained innovation across its portfolio of technology products and its expansion into Ethiopia.

"We have delivered excellent group performance with double-digit growth on both top and bottom lines. This strong set of results reflects the dedication of our teams, the loyalty of our customers, and the strength of our strategy," Ndegwa said.

Safaricom’s shift towards a technology-driven business model is a result of its five-year strategy cycle, during which it has actively embraced digital transformation.

This move has included increasing investments in Kenya and Ethiopia, as well as committing over Sh18 billion to education, health, environmental, and economic empowerment initiatives over the last five years.

The group’s Earnings Before Interest and Taxes (EBIT) grew by 29.5%, reaching Sh151 billion, signaling strong profitability.

Ethiopia, which has become a significant part of the company’s portfolio, contributed nearly 10% of the total group revenue.

Safaricom’s operations in the country are expected to become profitable by the 2027 financial year, following a successful increase in the customer base to 8.8 million, alongside the deployment of over 3,141 sites.

In Kenya, Safaricom’s service revenue grew by 10.5% to Sh364.3 billion, driven by continued demand for mobile and data services.

M-PESA, the mobile money platform that celebrated its 18th anniversary last year, reported revenue of Sh161 billion, representing 44.2% of Kenya’s service revenue.

The platform’s expansion beyond traditional payments into wealth management and credit solutions resulted in a 15.2% year-on-year revenue increase.

The company’s connectivity business in Kenya also performed well, growing by 6.5% to Sh185.2 billion, with mobile data revenue increasing by 15.2% to Sh72.9 billion, fueled by greater adoption of 4G technology.

In a global context where traditional voice revenue is declining, Safaricom’s voice revenue increased by 1.6% to Sh80.8 billion.

"This year’s results are more than a reflection of past performance; they are a foundation for our vision of becoming Africa’s leading purpose-led tech company by 2030. We are entering a new phase of growth, and we will continue harnessing innovation for social good and shaping the future of Kenya, Ethiopia, and beyond," Ndegwa added.