Safaricom Plc, Kenya’s largest telecommunications operator, reported a sharp turnaround in profitability, with group net earnings rising to KSh 29.1 billion ($225 million) in the six months to September 2025.
According to the group’s earnings report on Thursday, its after-tax profit performance was an increase of 192% from the same period in 2024, driven primarily by a narrower loss in its Ethiopian operations and sustained growth in mobile money and data services.
The group’s service revenue rose 11.1% year-on-year to KSh 199.87 billion ($1.55 billion), supported by strong performance in M-PESA and mobile data. Safaricom’s customer base also expanded, with total subscribers growing 19.7% to 62.27 million, while one-month active users increased 16.8% to 46.44 million.
The company noted that Ethiopia’s macroeconomic environment has stabilised, with the country no longer classified as hyperinflationary under IAS 29 as of June 2025. During the six-month period, the Ethiopian birr depreciated 16.9% against the US dollar.
Safaricom also saw its credit losses on financial assets decline, falling 45% to KSh 2.51 billion ($19.4 million), while net finance costs dropped 9.3% to KSh 9.89 billion ($76.5 million).
“Despite a tough operating environment, we maintained strong momentum, expanding our network in both markets, launching Fintech 2.0, and deepening our presence in Ethiopia,” said Peter Ndegwa, Group CEO. “These milestones reflect our focus on scalable tech solutions and our commitment to meeting evolving customer needs.”
The new Fintech 2.0 platform, an AI-powered upgrade to M-PESA, has doubled transaction processing capacity from 6,000 to over 12,000 transactions per second.
Kenya performance
M-PESA remained a key revenue pillar, accounting for 45.4% of service revenue. Earnings from the platform grew 14% to KSh 88.06 billion ($681 million), supported by increased transaction frequency and a wider merchant network.
The company also introduced new MSME-focused credit offerings under the Taasi suite. Connectivity services contributed 49.6% of revenue, rising 5.3% to KSh 96.2 billion ($744 million).
Mobile data revenue increased 13.4% to KSh 40.32 billion ($312 million), supported by increased 4G/5G usage and the introduction of time-based “B-Live” bundles. Fixed services and IoT revenue also grew 9.5% to KSh 9.8 billion ($75.8 million), pushing Safaricom’s fixed internet market share to 34.3%.
Ethiopia performance
Safaricom Ethiopia reported service revenue of KSh 6.19 billion ($47.9 million), more than double its performance a year ago. Mobile data represented 66.7% of total revenue, followed by voice at 22.1% and messaging at 11.2%
Three-month active customers soared 83.7% to 11.2 million, while one-month active customers rose 90% to 8.51 million. Voice revenue topped KSh 1.37 billion ($10.6 million), and messaging revenue reached KSh 74.15 million ($0.57 million).
Market position and outlook
Safaricom remains the most valuable stock on the Nairobi Securities Exchange, with a market capitalisation of KSh 1.2 trillion ($9.28 billion), representing about 40% of total NSE equity value. Its share price has climbed 75.4% year-to-date.
“As we move into the second half of FY26, we are focused on scaling innovation, enhancing customer experience, and deepening strategic partnerships,” Ndegwa said. “Our journey over the past 25 years has been defined by purpose and innovation, and we remain committed to shaping the future of financial inclusion and connectivity across Africa.”
Note: Exchange rates are based on official average of KSh/$1 as of September 30, 2025
