The company’s record-breaking profit indicates how deeply mobile money and data services have become embedded in East Africa’s digital economy, with M-Pesa once again proving to be the company’s most powerful growth engine even as its Ethiopia expansion continues to weigh on short-term earnings and reshape its long-term regional strategy.
East Africa’s biggest company Safaricom Plc has reported its strongest annual performance on record, driven by mobile money and data demand as its expansion in Ethiopia narrowed losses and boosted overall growth.
The Kenyan telecommunications operator said net income rose 67.3 percent to $767 million for 2025, equivalent to Sh99.7 billion, marking the highest profit ever recorded by a company in East and Central Africa.
The company’s service revenue increased 10 percent to roughly $3.08 billion as usage of mobile money and internet services expanded across its markets. Momentum strengthened in the second half, with service revenue rising 10.7 percent year on year compared with 9.3 percent in the first half.
M-Pesa remained the main growth engine, accounting for 59.2 percent of incremental revenue. The mobile money platform grew 13.4 percent year on year and lifted its share of total revenue to 45.6 percent.
Connectivity revenue, Safaricom’s largest segment, rose 6.9 percent, supported by a 14.4 percent increase in mobile data usage. Fixed services climbed 12.2 percent, driven by growth in consumer demand.
Earnings before interest and taxes rose 15.3 percent to about $1.40 billion, while total earnings increased 24.7 percent to roughly $915 million.
Safaricom also reduced losses in Ethiopia by half, helping offset heavy upfront investment costs in the market, where it has deployed more than $1.2 billion.
The company announced a dividend of Sh2 per share, equivalent to a total payout of about $616 million, up 66.7 percent from the previous year. The payout includes an interim dividend of 85 cents per share and a final dividend of Sh1.15.
“This is a major milestone for Safaricom. Our dividend payout has risen above the levels recorded before COVID and prior to our Ethiopia investment,” said Chief Executive Officer Peter Ndegwa.
Ndegwa said the firm achieved the payout despite expanding its Ethiopia operations without increasing debt levels.
