Safaricom has reported a net profit attributable to shareholders of 58.2 billion Kenyan shillings (approximately $448 million) for the first half of its financial year ended September 2026, representing a 35.9% increase from the same period a year earlier. The strong result was driven by robust performance in the company’s home market of Kenya and a sharp reduction in losses at its Ethiopian subsidiary.
Group service revenue rose 13.1% to 226.1 billion shillings during the period, underscoring the resilience of Safaricom’s core business despite challenging macroeconomic conditions across the region. In Kenya, which continues to account for the overwhelming majority of Safaricom’s business, service revenue increased 11.3%, while net profit climbed 13.8% to 66.3 billion shillings. The Kenyan operation remains the group’s financial anchor, generating consistent cash flows that support expansion into new markets.
The most dramatic improvement, however, came from Ethiopia. Safaricom’s Ethiopian subsidiary posted service revenue growth of 71.6% to 10.6 billion shillings, while its loss before interest, taxes, depreciation and amortisation narrowed by 96.5% to approximately 400 million shillings. The improvement brought the subsidiary close to covering its recurring operating expenses, a significant milestone for a business that launched commercial services only four years ago.
Nevertheless, Safaricom Ethiopia has yet to achieve profitability. After accounting for depreciation and amortisation, including charges related to network construction since the company’s entry into the market, the subsidiary recorded an operating loss of 11.4 billion shillings. That figure nonetheless represents a reduction of more than 50% from the previous year. The subsidiary also narrowed its net loss by 43.2% to 8.8 billion shillings.
Management maintained its target of reaching EBITDA break-even in Ethiopia by March 2027. Achieving that milestone would mean the subsidiary could cover its recurring operating expenses through revenue before depreciation and amortisation. However, the company cautioned that the milestone would not necessarily translate into a net profit, as depreciation, amortisation and financing costs would continue to weigh on earnings.
The Ethiopian operation now serves more than 15 million subscribers who have been active within the past 90 days. Its network comprises more than 3,500 sites and covers approximately 60% of Ethiopia’s population, four years after the launch of commercial services. The subscriber base and network footprint position Safaricom Ethiopia as a significant player in one of Africa’s largest and most populous markets.
Safaricom did not disclose a separate figure for its Ethiopian subsidiary’s net cash burn during the reporting period. However, management believes the business has largely completed its most capital-intensive development phase. The operator expects capital expenditure in Ethiopia to range between 6 billion and 9 billion shillings for the full financial year, significantly below the funding requirements of its initial network construction phase. The reduced capital expenditure guidance suggests that the subsidiary is transitioning from a build-out phase to a more sustainable operating model.
The results come as Safaricom continues to balance investment in future growth with delivering returns to shareholders. The Kenyan business remains the primary source of profitability, while Ethiopia represents the group’s most significant long-term growth opportunity. Analysts have closely watched the Ethiopian operation’s losses, which have weighed on group earnings since the subsidiary’s launch, and the sharp narrowing of those losses is likely to be viewed positively by investors.
Safaricom’s performance in Kenya has been supported by sustained growth in mobile data, mobile money and enterprise services. The company’s M-Pesa platform remains a dominant force in Kenya’s financial services landscape, contributing significantly to service revenue. The Kenyan operation’s 13.8% net profit growth reflects both revenue expansion and effective cost management.
