Safaricom on brink of Ethiopia profit target

Safaricom, the leading telecommunications company in Kenya and Ethiopia, reported a significant 35.9% increase in group net income to Ksh58.2 billion for the six months ending September 30, 2026. This growth was driven by robust performance in both markets, with Kenyan business revenue rising 13.1% to Ksh226.1 billion and EBITDA increasing by 27.5% to Ksh129.2 billion.

Ethiopia's performance was particularly noteworthy, with a 71.6% surge in service revenue to Ksh10.6 billion, while the EBITDA loss narrowed by 96.5% to Ksh434.4 million, bringing the business closer to breaking even. The company's CEO, Peter Ndegwa, emphasized the company's commitment to its Vision 2030 strategy, highlighting the progress made in Ethiopia and the broader execution of the company's goals.

In Kenya, Safaricom saw a 11.3% increase in service revenue to Ksh216 billion and EBIT increase by 13.7% to Ksh101.8 billion. M-Pesa, the mobile money platform, achieved a landmark milestone with Ksh100.1 billion in revenue, crossing the Ksh100 billion threshold for the first time in a half-year period. Nearly 53% of M-Pesa transactions remained free, while 81% of Lipa na M-Pesa and Pochi la Biashara transactions, and 63% of consumer transactions, were also offered without charges.

Safaricom's Chairman, Adil Khawaja, praised the company's performance, stating that it reflected the resilience of the business and the strength of its purpose-driven strategy. The company has reached over 1.5 million people through its education, health, and economic empowerment programs during the half-year period, and has engaged 60,000 young players in the fifth season of the Safaricom Chapa Dimba football tournament.