Safaricom net income surges 10.8pc to KES 69.8 Billion as tech transition bears fruit

Dr. Peter Ndegwa, CEO of Safaricom PLC, Presenting financial results for year ended March, 2025 at Safaricom Headquarters in Nairobi on Friday 9th 2025

Safaricom PLC (NSE: SCOM) has posted a robust 10.8 percent increase in net income to KES 69.8 billion for the financial year ended March 31, 2025, underlining the success of its transformation into a purpose-led technology company.

The telco-turned-tech giant also reported an 11.2 percent growth in total revenue to a record KES 388.7 billion (USD 3 billion), marking the first time a company in the region has crossed the $3 billion revenue threshold.

The performance capped off Safaricom’s five-year strategic journey to evolve from a traditional telecommunications provider to a fully-fledged technology company with a growing footprint in Kenya and Ethiopia.

Safaricom PLC CEO Dr. Peter Ndegwa attributed the strong results to strategic innovation across the company’s product portfolio, successful expansion into Ethiopia, and consistent community investments. “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,” he said.

The company declared a total dividend payout of KES 48.08 billion for the year, including a final dividend of 65 cents per ordinary share, following an interim dividend of 55 cents issued earlier in March 2025.

Ethiopia expansion bears fruit

Safaricom’s Ethiopian subsidiary emerged as a key growth driver, contributing nearly 10 percent of group revenue. Subscriber numbers in the country more than doubled to 8.8 million, while M-PESA, launched in Ethiopia last year, attracted 2.4 million active users who transacted over KES 20.6 billion.

The Ethiopian unit has now moved past its peak investment phase and is expected to turn profitable by the 2027 financial year.

M-PESA and data power Kenyan growth

In Kenya, service revenue grew 10.5 percent to KES 364.3 billion. M-PESA continued to anchor the company’s financial services ambitions, growing 15.2 percent year-on-year to hit KES 161.1 billion — accounting for 44.2 percent of Kenya’s service revenue. The mobile money platform saw growth beyond basic payments, expanding into wealth management and credit services.

Connectivity services also remained solid, with mobile data revenue climbing 15.2 percent to KES 72.9 billion on the back of increased 4G adoption. Voice revenue, despite global declines, posted a modest 1.6 percent increase to KES 80.8 billion.

Strong earnings, cash flow growth

Group earnings before interest and taxes (EBIT) surged 29.5 percent to KES 104.1 billion, while operating free cash flow grew 15.8 percent to KES 148.9 billion — reflecting improved operational efficiency and disciplined capital expenditure.

Community investment

Over the past five years, Safaricom invested over KES 18 billion in community projects spanning education, health, environment, and economic empowerment, directly impacting more than 13 million lives. These initiatives were instrumental in reinforcing the company’s brand and purpose.

“These 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 will continue harnessing innovation for social good.” Dr. Ndegwa said

Key Financial Highlights:

Group Revenue: 11.2 percent to KES 388.7 billion

Service Revenue: 10.8 percent to KES 371.4 billion

Net Income (Group): 10.8 percent to KES 69.8 billion

Net Income (Kenya): 12.7 percent to KES 95.5 billion

M-PESA Revenue: 15.1 percent to KES 161.1 billion

Mobile Data Revenue: 16.5 percent to KES 78.5 billion

Voice Revenue: 1.8 percent to KES 81.9 billion

Operating Free Cash Flow: 15.8 percent to KES 148.9 billion

With its transformation strategy now complete, Safaricom is poised for a new era of regional growth and digital innovation.