Safaricom Profit Jumps as Kenya and Ethiopia Drive Strong Business Growth

Safaricom PLC has reported a significant increase in its financial performance, recording a 35.9 per cent rise in group net income to KSh58.2 billion for the six months ended September 30, 2026. The impressive performance reflects continued growth in its Kenyan operations and improving results from its expanding business in Ethiopia.

The telecommunications company also recorded a 13.1 per cent increase in group service revenue, reaching KSh226.1 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.5 per cent to KSh129.2 billion. These figures demonstrate Safaricom’s strong position in the telecommunications and financial services markets across East Africa.

Kenya Remains Safaricom’s Major Revenue Driver

Kenya continues to be Safaricom’s strongest market, contributing the largest share of the company’s revenue. During the reporting period, its Kenyan operations generated KSh216 billion in service revenue, representing an 11.3 per cent increase compared with the previous year.

One of the major contributors to this growth was M-PESA, Safaricom’s mobile money platform. M-PESA revenue increased by 13.6 per cent to KSh100.1 billion, crossing the KSh100 billion mark for the first time in a six-month reporting period.

The success of M-PESA highlights the growing importance of digital financial services in Africa. Millions of customers depend on the platform for money transfers, payments, savings and other financial activities.

Why Ethiopia Matters to Safaricom

Ethiopia is becoming an increasingly important market for Safaricom as the company continues its expansion beyond Kenya. Since launching operations in Ethiopia in 2022, the company has invested heavily in telecommunications infrastructure, network expansion and customer acquisition.

Its Ethiopian operations recorded a remarkable 71.6 per cent increase in service revenue to KSh10.6 billion. The business also expanded its customer base to 15.4 million three-month active customers, representing 38.4 per cent growth.

Another important development is the reduction in operating losses. Safaricom Ethiopia’s EBITDA loss narrowed by 96.5 per cent to approximately KSh434.4 million. This indicates that the business is gradually moving towards profitability.

Ethiopia’s large population and growing demand for mobile connectivity, internet services and digital payments offer Safaricom considerable opportunities for long-term growth.

Implications for Telecommunications Competition in East Africa

Safaricom’s performance could significantly influence competition within East Africa’s telecommunications industry. Its growing presence in Ethiopia creates opportunities to compete in a market with considerable potential for digital transformation.

As the company expands its network and financial services, other telecommunications operators may face increased pressure to improve service quality, invest in technology and introduce more competitive products.

The growth of mobile money services could also strengthen financial inclusion by giving more people access to digital transactions and financial services.

Ultimately, Safaricom’s latest results demonstrate that its ambitions extend beyond Kenya. While the Kenyan market remains its major source of revenue, Ethiopia is gradually becoming an important contributor to its growth strategy.

If Safaricom successfully achieves its target of reaching EBITDA break-even in Ethiopia by the end of the current financial year, the market could become an even stronger contributor to the company’s long-term financial performance.

The company’s progress therefore represents more than a successful financial report. It highlights the growing opportunities in Africa’s digital economy and the potential for telecommunications businesses to expand their influence across national borders.