Safaricom shareholders will receive KSh 80 billion in dividends for the financial year ending 31 March 2026, a 66.7% increase on the previous year and the largest payout in the company’s 25-year history.
Net income attributable to shareholders grew 67.3% to a record KSh 100 billion. Kenya crossed KSh 400 billion in service revenue for the first time. Ethiopia halved its startup losses.
“Net income attributable to shareholders of Safaricom grew 67.3% to a record 100 billion Kenya shillings,” CEO Peter Ndegwa told shareholders, investors and media at the results presentation. “When you are a CEO presenting these numbers, you are not used to saying: delivered strong double digit growth across all key metrics.”
Group Results
| Metric | FY2026 | Change YoY |
|---|---|---|
| Group service revenue growth | — | +11.1% |
| Group EBITDA margin | 51.5% | First time above 50% since Ethiopia entry |
| Group EBIT growth | — | +58.5% |
| Net income (ex-minority interest) | KSh 100 billion | +67.3% |
| Group operating free cash flow | — | +39% |
| Group capex | KSh 74.5 billion | -18.4% |
| Group capex intensity | 17.5% | Within target |
| Total group customers | 72 million | — |
| Total dividend | KSh 80 billion | +66.7% |
For the first time since entering Ethiopia, group EBITDA margin cleared 50%, closing at 51.5%. EBIT grew 58.5% and free cash flow expanded 39%.
Kenya
| Metric | FY2026 | Change YoY |
|---|---|---|
| Service revenue | KSh 400B+ (~$3B) | +10% |
| H2 service revenue growth | — | +10.7% |
| EBITDA margin | 56.8% | +2.8pp |
| EBIT | KSh 182 billion | +15.3% |
| EBIT margin | 44.2% | +2.7pp |
| Net income | KSh 119 billion | +24.7% |
| Operating free cash flow | — | +16.7% |
| Service revenue absolute YoY growth | KSh 36 billion | Highest ever |
| 90-day active customers | 57.9 million | — |
| 30-day active customers | 39.9 million | — |
Kenya recorded its highest ever absolute year-on-year revenue increase of KSh 36 billion. This is the third consecutive year of double digit growth.
“This achievement is notable,” CFO Dilip Pal said, “because it was built on a very high base from the last two years.”
EBITDA and EBIT margins each expanded by more than 2.7 percentage points. Net income reached KSh 119 billion and operating free cash flow grew 16.7%.
The customer base driving these numbers: the youth platform S-Hook reached 6 million customers, Wasee Life hit 5 million, and more than 30 million customers now use 4G devices, over half consuming more than 1GB of data per month.
M-PESA
M-PESA contributed 59.2% of total service revenue growth, growing 13.4% year on year and expanding its share of the revenue mix to 45.6%.
| Metric | FY2026 | Change YoY |
|---|---|---|
| Total transactions | 46.4 billion | +25.1% |
| Non-chargeable transactions | 57.8% of total | — |
| Value transacted | KSh 41.7 trillion | +8.9% |
| Chargeable transactions per customer per month | 42.3 | +11.5% |
| Payments revenue growth | — | +17.7% |
| Payments share of M-PESA revenue | 74.4% | — |
| Free or non-chargeable payments | 68.3% of total | — |
| Financial services revenue growth | — | +19.1% |
| Distinct credit customers | 18 million | More than doubled |
| Credit revenue growth | — | +20.6% |
| Assets under management (Ziidi MMF) | KSh 21 billion | — |
| Ziidi MMF customers | 2.2 million | — |
| Ziidi Trader customers | 500,000+ | — |
| Active capital markets investors | 84,000 | — |
Of the 46.4 billion transactions processed, 57.8% were free. Paybill revenue fell from 38% to 20% of M-PESA revenue over five years. Financial services grew 19.1%, the fastest rate in three years. The number of distinct credit customers more than doubled to 18 million.
“This clearly anchors our ethos of affordability,” Pal said.
Over 2 million customers made their first structured savings contribution through the Ziidi Money Market Fund. 84,000 Kenyans are now trading on the Nairobi Securities Exchange from their phones.
“This is a meaningful step towards making wealth creation accessible to every Kenyan,” Ndegwa said.
Merchants
| Metric | FY2026 | Change YoY |
|---|---|---|
| Total merchant base | 3.1 million | +71.4% |
| Lipa Na M-PESA merchants | 1 million+ | +54.2% |
| Lipa Na M-PESA revenue growth | — | +21.7% |
| Pochi la Biashara merchants | 2 million+ | +81.5% |
| Pochi la Biashara revenue | KSh 4 billion | Doubled |
| Merchant payments share of business payments growth | 43.6% | — |
| International remittance revenue | KSh 4 billion | +17.5% |
| Kadogo P2P transaction growth | — | +40% |
| Kadogo merchant transaction growth | — | +30% |
Pochi la Biashara doubled its revenue to KSh 4 billion and crossed 2 million merchants. Lipa Na M-PESA crossed 1 million formal merchants. Together, merchant payments drove 43.6% of all growth in business payments revenue.
17.1 billion transactions moved through the platform at no cost to the user during the year. That is roughly 46 million free transactions every day.
Super Apps
The consumer and business Super Apps together contributed one quarter of all incremental M-PESA revenue in FY2026. Consumer app active customers grew 40% to 6.6 million. Usage on the consumer app grew 54.3% and on the business app 66.8%.
“You will see from the numbers why the Super App is so important to our customers,” Pal said. “That is why there is so much emotion when you are not able to deliver what customers expect.”
The MyOneApp Rollout
Safaricom launched its unified MyOneApp in early May 2026. Three million customers have onboarded. The rollout caused friction for diaspora customers, roaming users and those with automatic update settings.
Ndegwa addressed it directly. “I want to apologize, just like we did a few weeks ago, and give an assurance that we are acting on this feedback. The app is now stable for customers on the latest version.”
80% of users on the latest version report an improved experience. A dedicated support channel for diaspora customers is now in place.
Connectivity
| Metric | FY2026 | Change YoY |
|---|---|---|
| Connectivity revenue growth | — | +6.9% |
| H2 connectivity revenue growth | — | +8.4% |
| Voice revenue growth (full year) | — | +1.3% |
| H2 voice revenue growth | — | +4.6% |
| Mobile data revenue growth | — | +14.4% |
| Data share of connectivity growth | 82.5% | — |
| 4G+ device customers | 30 million+ | — |
| 5G device customers | 1.6 million | +55.5% |
| Customers using 1GB+ per month | 14.5 million | +22.4% |
| Average usage per user growth | — | +16.6% |
Connectivity remains the largest revenue contributor, accounting for one third of service revenue growth. Voice recovered in H2, growing 4.6% after a 2.1% decline in H1. Mobile data drove 82.5% of connectivity growth.
Fewer than half of the 30 million 4G+ device users currently consume more than 1GB per month.
“Customers who are not using 1GB in a month represent a huge opportunity,” Pal said. “That is why we believe the mobile data growth trajectory can remain for the foreseeable future.”
Fixed Broadband
| Metric | FY2026 | Change YoY |
|---|---|---|
| Total fixed customers | 491,000 | — |
| Consumer customer growth | — | +35% |
| Enterprise customer growth | — | +19.7% |
| Homes passed | 807,000 | — |
| New homes connected YoY | 230,000 | — |
| Fixed revenue growth (full year) | — | +12.2% |
| H2 fixed revenue growth | — | +14.9% |
| Consumer fixed revenue growth | — | +19.5% |
| Fixed wireless share of connections | 27% | +53% |
Fixed broadband revenue grew 14.9% in H2 after single digit growth in H1. Consumer fixed revenue grew 19.5% and now makes up 44.7% of total fixed service revenue. Fiber Light, priced at KSh 1,000 to KSh 2,000 per month, extended broadband into lower income households. Homes in the Kenya Affordable Housing Programme now arrive connected from day one.
Costs and Capital Expenditure
| Metric | FY2026 | Change YoY |
|---|---|---|
| Direct cost growth | — | +1.7% |
| Contribution margin | 74.9% | — |
| Operating cost growth | — | +9.6% |
| Operating cost growth (ex-Forex) | — | +7.7% |
| OPEX intensity | 18.1% | Broadly stable |
| Group capex | KSh 74.5 billion | -18.4% |
| Ethiopia capex | — | -52.2% |
| Ethiopia total sites | 3,504 | +363 new sites |
| Long-term debt share | 77% | +16.4pp |
| Kenya debt (absolute change) | — | -KSh 19.7 billion |
| Interest cost | — | -24.3% |
Direct costs grew 1.7%, reflecting lower handset sales and normalised bad debt provisions. Operating costs rose 9.6%, driven by Forex depreciation against the Euro and anniversary marketing spend. Strip out Forex and operating costs grew 7.7%.
Group capex fell 18.4% to KSh 74.5 billion. Ethiopia capex dropped 52.2% as the network approached scale at 3,504 sites. Long-term debt now makes up 77% of total group debt, up 16.4 percentage points, anchored by the KSh 20 billion green bond issued in December 2025. Interest costs fell 24.3%.
“Overall, our costs are well managed and have supported delivery of a strong bottom line,” Pal said.
Ethiopia
| Metric | FY2026 | Change YoY |
|---|---|---|
| 90-day active customers | 13.6 million | — |
| Data customers | 10.4 million | 1.5x YoY |
| Data penetration of voice base | 93.7% | — |
| Voice customers | 11.1 million | 1.4x YoY |
| Average data usage per user | 6.9 GB | 1.4x Kenya |
| Voice usage per user | 144.6 min/month | +13.6% |
| Service revenue (ETB) | ETB 15.9 billion | More than doubled |
| Ethiopia share of group revenue growth | 13% | — |
| ARPU (ETB) | ETB 151.7 | +25.7% |
| M-PESA active customers | 5.2 million | +119% |
| Merchants | 70,000+ | — |
| Full year EBIT loss | KSh 30 billion | Halved YoY |
| H1 EBITDA loss | KSh 12.4 billion | — |
| H2 EBITDA loss | KSh 2.7 billion | — |
| Startup losses | KSh 21.2 billion | -41.2% |
| Total funding | $2.65 billion | — |
| Foreign currency debt | $234 million | — |
| Expatriate staff | ~19 | — |
Ethiopia’s EBITDA loss fell from KSh 12.4 billion in H1 to KSh 2.7 billion in H2. Startup losses dropped 41.2% to KSh 21.2 billion. The business now contributes 13% of group revenue growth.
A tariff revision approved by the Ethiopian Communications Authority in late December drove a sharp Q4 acceleration. Data revenue rose 33.8% quarter on quarter. Voice revenue grew 18.6% in Q4, with the rate per minute rising 44%.
M-PESA Ethiopia grew 119% year on year to 5.2 million active customers across 70,000 merchants. Average data usage of 6.9GB per month already exceeds Kenya’s figure.
Expatriate headcount stands at approximately 19 people. “Digital Ethiopia must be delivered by Ethiopians,” Ndegwa said.
“The pathway to EBITDA breakeven and profitability is definitely taking shape,” Pal said. “We are committed to staying the course.”
Dividend
| Metric | FY2026 | Change YoY |
|---|---|---|
| Total dividend per share | KSh 2.00 | +66.7% |
| Total payout | KSh 80 billion | Record |
| Interim dividend (paid) | KSh 0.85 per share | — |
| Recommended final dividend | KSh 1.15 per share | Subject to AGM, July 2026 |
The KSh 80 billion dividend exceeds pre-COVID levels and the payouts made before Ethiopia investment compressed shareholder returns.
“We have achieved this despite investing $1.2 billion in Ethiopia, without increasing our debt ratios,” Ndegwa said. “To our investors, we thank you. We also thank you for your patience over the past four to five years as we navigated a startup in Ethiopia. That patience is not unrewarded. This is what long-term conviction and disciplined execution can deliver.”
FY2027 Guidance
| Metric | Range | Growth |
|---|---|---|
| Kenya EBIT | KSh 195–199 billion | +8–9% YoY |
| Ethiopia EBIT losses | KSh 12–15 billion | Reduced by 50%+ |
| Group EBIT | KSh 180–187 billion | +18.5% YoY |
| Kenya capex | KSh 58–61 billion | — |
| Ethiopia capex | KSh 6–9 billion | Roughly half of FY2026 |
Group EBIT is projected between KSh 180 billion and KSh 187 billion for FY2027.
“We are getting closer to the one and a half billion dollar business in terms of profitability,” Ndegwa said, “with an 18.5% year on year increase.”
Ethiopia capex will fall to KSh 6 billion to KSh 9 billion, roughly half of FY2026, as the network closes in on its 4,000-site target. For Ethiopia’s management team, the instruction from Ndegwa was unambiguous. “Execute the FY2027 plan and achieve EBITDA breakeven. Continue to create a sustainable business by implementing regulator-guided actions and grow M-PESA further.”
For Kenya, the focus shifts to defending and extending M-PESA’s position as competition intensifies in financial services, deepening converged propositions across business segments, and embedding AI further into products and operations.
Licence and Looking Ahead
Safaricom secured a 25-year operating licence renewal from the Communications Authority of Kenya during the year, removing uncertainty that had sat above the business and the wider industry.
“This is a major milestone in our business,” Ndegwa said, “bringing greater long-term stability and investment confidence to the industry. This is not just about Safaricom. It is also about the industry.”
Group customers stand at 72 million across two markets. Group EBIT approaches $1.5 billion. The record dividend is KSh 80 billion. The company enters FY2027 in the strongest financial position in its history.
“Strong execution in our first year of the 2030 strategy,” Ndegwa said, “signals a great setup for delivering on our vision.”
