Safaricom Kenya, Ethiopia units lift group profit on M‑Pesa and Addis mobile subscriber growth

Safaricom Group reported an 11.5% rise in service revenue to KES 414.1 billion ($3.2 billion) for the year ended March 31, 2026, driven by growth in its Kenya and Ethiopia operations, company officials said. The increase was fueled by a 10% revenue gain in Kenya and an 86.6% surge in Ethiopia, supported by expanding M-Pesa and mobile subscriber numbers.

The increase was supported by growth in M-Pesa mobile money transactions and mobile data revenue, according to the group’s half-year financial update. Safaricom Kenya’s net income for the same period was reported at KES 58.2 billion on service revenue of KES 194 billion, highlighting the Kenyan unit’s dominant role in profitability, records show.

Safaricom Group’s profit after tax rose by more than 51% to KES 42.8 billion (about $330 million) in the six months ended Sept. 30, 2025, driven by strong performances in its Kenya and Ethiopia operations, company officials said.

Kenya remains Safaricom’s core market, with about 50 million subscribers, according to CEO Peter Ndegwa. For the full year ended March 31, 2026, Safaricom Kenya’s service revenue rose 10% year-on-year to KES 400.8 billion (approximately $3.1 billion), accounting for the bulk of the group’s total service revenue of KES 414.1 billion. Connectivity revenue was the largest contributor, reaching KES 96.2 billion in the half-year period, while mobile data revenue grew to KES 40.3 billion, underpinning earnings growth from the Kenyan base, company records show.

M-Pesa, Safaricom’s mobile money platform launched in Kenya in 2007, remains a key driver of the group’s earnings. Ndegwa stated that M-Pesa transactions in Kenya move over 50% of the country’s gross domestic product, underscoring the platform’s centrality to Safaricom’s revenue. While detailed full-year M-Pesa revenue figures for Kenya were not disclosed, the half-year results explicitly credited M-Pesa and mobile data growth for the significant rise in group profit after tax. Safaricom describes M-Pesa as the world’s leading mobile money service, which has evolved from basic transfers to include merchant payments, savings, credit, and international remittances, expanding revenue per customer.

Outside Kenya, Safaricom’s Ethiopia operations showed rapid growth, with service revenue increasing 86.6% year-on-year to KES 14.1 billion (about $109 million) for the year ended March 31, 2026, according to the group’s full-year results. The active customer base in Ethiopia climbed to 11.2 million by mid-2025, reflecting rapid subscriber acquisition in the country, a TV business report citing Safaricom’s half-year results noted. Peter Ndegwa described Ethiopia as “one of the biggest growth opportunities” for the group, with over 10 million subscribers reported in the country.

Safaricom Telecommunications Ethiopia PLC launched M-Pesa in August 2023, extending its mobile money service to the new market. By December 2024, registered M-Pesa customers in Ethiopia had increased 245% to 10.8 million from 3.1 million a year earlier, according to company data. In the third quarter of fiscal 2026, M-Pesa revenue in Ethiopia reached KES 12.2 million, with 2.4 million one-month active customers and transaction values rising 102.8% year-on-year on a constant-currency basis. The quarter ending December 2025 saw active M-Pesa customers grow 258.5% year-on-year to 5.2 million, and total transaction value increased 192% to KES 364 million following integration with the national payment switch, EthSwitch, in October, according to a Business Daily report.

Ethiopia’s service revenue growth was largely driven by mobile data, which accounted for 68.3% of total revenue in Q1 FY26, rising 26.1% to KES 2.0 billion. The average revenue per user (ARPU) in Ethiopia increased 41.3% to KES 132.70 during the same quarter, while the number of 90-day active mobile customers rose 64% year-on-year to 7.1 million by December 2024, records show. Mobile data users increased 141% year-on-year to 4.4 million, with average data usage per chargeable customer growing 82.6% to 6.6 gigabytes, according to Safaricom’s operational metrics.

Despite the rapid growth, Safaricom Ethiopia remained in an investment phase, narrowing its losses to KES 15.5 billion in the half-year period, according to the group’s financial update. The expansion included deploying 3,101 base stations covering 48.5% of the population, with a target of 55% coverage by June 2025. The number of M-Pesa agents increased 17% to 29,200, and merchants grew 177% to 119,500, supporting the mobile money ecosystem’s expansion in Ethiopia.

Safaricom Group’s total customer base rose to 62.3 million in the half-year period, reflecting subscriber additions in both Kenya and Ethiopia. The mature Kenyan operation continues to provide a stable profit base, while Ethiopia’s high revenue growth and increasing M-Pesa adoption contribute to reducing losses and lifting overall group profitability, company officials said.

Safaricom’s integrated payments and financial services platform, centered on M-Pesa, supports high margins and stable cash flows, enabling the group to fund capital-intensive expansion in Ethiopia. The company’s strategic focus on growing mobile data and mobile money services in both markets aligns with its long-term growth objectives, according to Safaricom communications.