Safaricom PLC has announced a landmark achievement, becoming the first company in East Africa to surpass $3 billion (KES 388.7 billion) in annual revenue for the fiscal year ending March 31, 2025.
This 11.2% year-on-year growth underscores the company’s successful transformation into a technology powerhouse, driven by strategic investments in innovation, digital services, and regional expansion.
The company’s net income also saw a significant rise, increasing by 10.8% to KES 69.8 billion. Earnings Before Interest and Taxes (EBIT) surged by 29.5% to KES 104.1 billion, reflecting robust operational performance.
In recognition of this strong financial performance, Safaricom’s board approved a total dividend payout of KES 48.08 billion, translating to KES 1.20 per share.
In its home market of Kenya, Safaricom’s service revenue grew by 10.5% to KES 364.3 billion. M-PESA, the company’s flagship mobile money platform, contributed KES 161 billion, accounting for 44.2% of the service revenue.
That’s a 15.2% jump from last year, driven by Safaricom expanding beyond just payments to include things like saving, investing, and lending services.
The connectivity segment also performed well, with revenue increasing by 6.5% to KES 185.2 billion. Mobile data revenue saw a notable 15.2% rise to KES 72.9 billion, driven by increased 4G adoption. Voice revenue, defying global trends, grew by 1.6% to KES 80.8 billion.
In addition, Safaricom sold 2 million devices via its Lipa Mdogo Mdogo initiative and expanded its customer base for fixed home fiber to over 300,000 customers, reflecting a continued focus on enhancing connectivity and digital services in Kenya.
Ethiopian Expansion Gains Momentum
Safaricom’s operations in Ethiopia have shown promising growth, contributing nearly 10% to the group’s total revenue. The customer base in Ethiopia more than doubled to 8.8 million, with over 3,141 sites in operation.
M-PESA services in the country attracted 2.8 million active users, facilitating transactions worth over KES 20.6 billion during the year.
Despite some financial challenges, primarily due to the ongoing infrastructure development in Ethiopia, Safaricom is on track to meet its target of 4,000 sites.
The Ethiopian market remains a key focus for Safaricom, with the company aiming to ensure sustainability and profitability before considering further expansion into new markets.
Safaricom’s Strategy for Future Growth
“Safaricom’s transformation into a technology company is not just about achieving financial growth but about delivering long-term value for our customers and communities. We are committed to leveraging technology for social good and to becoming Africa’s leading purpose-driven tech company by 2030,” said Dr. Peter Ndegwa, Safaricom PLC CEO.
As part of this vision, Safaricom Ethiopia (ET) will soon launch Fuliza, a service that has been a major success in Kenya, as part of its strategy to adopt best practices from Safaricom Kenya.
The company is also focused on ensuring that Safaricom Ethiopia becomes sustainable and operationally efficient before exploring new markets in the region.
Commitment to Community and Sustainability
Over the past five years, Safaricom has invested more than KES 18 billion in community initiatives focusing on education, health, environmental conservation, and economic empowerment.
These efforts are part of Safaricom’s goal to become Africa’s top tech company with a clear purpose by the year 2030.
As Safaricom concludes its five-year strategic cycle, the company is poised to enter a new phase of growth.
