Shareholders to receive Sh48bn as Safaricom posts strong growth

Safaricom will reward its shareholders with a Sh48.08 billion dividend after a strong financial year that saw the company increase its net income and revenue, driven by growth in mobile money and broadband services.

The announcement was made on Friday, following the close of the financial year ending March 31.

The total payout includes a final dividend of 65 cents per ordinary share, adding to the interim dividend of 55 cents per share already disbursed.

This comes after the company posted Sh69.8 billion in net income, a 10.8% increase from the previous year.

According to Safaricom, the performance was supported by innovations in its TechCo product line, expansion into Ethiopia, and continuous community investment.

These efforts were part of a broader five-year strategy that ended this financial year and marked the company’s shift from a telecommunications provider to a fully-fledged technology company.

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

Total revenue rose by 11.2% to Sh388.7 billion, underlining the company’s steady growth. A key highlight was the rise in group earnings before interest and taxes, which jumped by 29.5% to Sh104.1 billion.

In Kenya, Safaricom’s service revenue reached Sh364.3 billion after growing by 10.5%.

M-PESA, which turned 18 last year, played a major role by bringing in Sh161 billion. That accounted for 44.2% of Kenya’s service revenue, with its year-on-year growth of 15.2% boosted by its expansion into credit services and wealth management.

Safaricom also confirmed that its Ethiopian operation contributed nearly 10% of the group’s overall revenue.

Management said the business had moved beyond its heavy investment phase and was expected to become profitable by the 2027 financial year.

Over the past five years, Safaricom has put more than Sh18 billion into community-based projects, supporting programmes in education, health, the environment, and economic empowerment.

These investments reflect the company’s efforts to grow both its business and its impact in the region.

Safaricom now enters a new growth phase after completing its transformation plan, with a renewed focus on using technology to connect and empower communities in Kenya, Ethiopia, and beyond.