Explainer: Why Safaricom shareholders could earn bigger dividends after Ksh58.2B half-year profit
Safaricom shareholders could receive higher dividends in the financial year ending March 2027 after the telecommunications company reported a 35.9 per cent increase in half-year net income to Ksh58.2 billion. The performance, recorded in the six months ended September 30, 2026, has strengthened expectations of a larger shareholder payout, with the company maintaining a policy […]
Safaricom shareholders could potentially earn larger dividends in the upcoming financial year, following the telecommunications giant's impressive half-year net income surge. The company reported a 35.9% increase in net income, reaching Ksh58.2 billion for the six months ending September 30, 2026. This strong financial performance has heightened expectations of a sizeable shareholder payout, as Safaricom adheres to a policy of distributing 80% of its consolidated net profit after tax, subject to minor adjustments.
The recent results demonstrate Safaricom's continued growth and success. The company's mobile money platform, M-PESA, generated Ksh100.1 billion in revenue during the six-month period, marking a 13.6% increase compared to the previous year's Ksh88.1 billion. Group service revenue also saw a 13.1% increase, totaling Ksh226.1 billion. Additionally, earnings before interest, tax, depreciation, and amortisation rose by 27.5% to Ksh129.2 billion.
While the Ksh58.2 billion half-year profit doesn't directly determine the dividend amount, it sets the stage for a potentially higher payout. The final dividend will depend on the company's full-year earnings and the board's decision. Safaricom's dividend policy has remained consistent, linking profitability to shareholder returns.
Group Chief Finance and Innovations Officer Dilip Pal confirmed that the dividend policy has not changed, stating that 80% of consolidated net profit after tax, adjusted for minority interests, will be distributed.
The company's performance is further bolstered by its Ethiopian operation, which recorded a 71.6% increase in service revenue, reaching Ksh10.6 billion. This strengthens Safaricom's position in the market and reduces pressure from expansion. Investors can anticipate the announcement of the FY2027 interim dividend in the first quarter of 2027, followed by a final dividend decision in May.
If earnings continue to grow and the dividend policy remains unchanged, shareholders may receive a higher payout than the Ksh2 per share recorded in FY2026. However, the exact amount will only be determined after the company announces its dividend recommendation.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
