Safaricom released its FY2026 results on 7 May 2026, reporting its strongest financial performance in years. Net income attributable to shareholders reached a record KSh 100 billion, up 67.3% year-on-year. Group EBITDA margin came in at 51.5%, the first time it has exceeded 50% since Safaricom entered Ethiopia. The board recommended a final dividend of KSh 1.15 per share, bringing the full-year total to a record KSh 2.00 per share, a 67% increase from the KSh 1.20 that had held flat for three consecutive years.
How Kenya Powered the Safaricom FY2026 Results
Kenya remained the primary growth driver in FY2026. Service revenue crossed KSh 400 billion for the first time, representing the highest-ever absolute year-on-year increase at KSh 36 billion. Kenya’s EBITDA margin expanded to 56.8%, up 2.8%, while Kenya’s net income grew 24.7% to KSh 119 billion.
M-PESA was the leading contributor, accounting for 59.2% of total service revenue growth. Revenue from the platform grew 13.4% and now represents 45.6% of Kenya’s total service revenue mix. Transactions reached 46.4 billion, up 25.1%, with total value transacted at KSh 41.7 trillion.
The merchant ecosystem expanded steadily, with Lipa Na M-PESA surpassing one million merchants and Pochi la Biashara crossing two million. Across every major M-PESA metric, the Safaricom FY2026 results confirmed that the platform continues to deepen its role in Kenya’s everyday economy.
Financial services within M-PESA recorded revenue growth of 19.1%. Credit customers more than doubled to 18 million, and credit revenue grew 20.6%. The Ziidi wealth platform added further momentum. The Ziidi Money Market Fund now manages KSh 21 billion in assets across 2.2 million customers, while Ziidi Trader, launched in February 2026, has onboarded over 500,000 customers and counts 84,000 active capital markets investors. CEO Peter Ndegwa described the platform as “a meaningful step towards making wealth creation accessible to every Kenyan.”
Connectivity revenue grew 6.9%, with data accounting for 82.5% of that growth at a 14.4% revenue increase. Fixed broadband revenue rose 12.2%, with homes passed reaching 807,000. Voice revenue, which had been under sustained pressure, showed signs of stabilisation in the second half of the financial year.
Ethiopia: Why the Safaricom FY2026 Results Signal a Real Turning Point
Ethiopia remained a closely watched part of the story, with losses narrowing significantly ahead of management’s own schedule. The full-year EBIT loss halved year-on-year to approximately KSh 30 billion, with startup losses falling 41.2% to KSh 21.2 billion. The second-half EBITDA loss narrowed to KSh 2.7 billion, compared to KSh 12.4 billion in the first half, pointing to a clear improvement in run-rate performance.
Ethiopia’s 90-day active customer base reached 13.6 million, supported by strong data adoption, with 10.4 million data customers on the network. M-PESA Ethiopia grew rapidly, with active customers rising 119% to 5.2 million and the merchant base expanding to over 70,000. Capex in Ethiopia fell 52.2% as the network build phase matured, now covering 3,504 sites.
Ndegwa addressed shareholders directly on the investment saying,
“We have achieved this despite investing $1.2 billion in Ethiopia, without increasing our debt ratios. To our investors, we thank you. We also thank you for your patience over the past four to five years as we navigated a startup in Ethiopia. That patience is not unrewarded. This is what long-term conviction and disciplined execution can deliver.”
The stated target for FY2027 is EBITDA breakeven in Ethiopia, and the Safaricom FY2026 results gave investors the clearest evidence yet that the operation is on track to reach that milestone.
What the Numbers Mean Going Forward
Beyond revenue and profit, the Safaricom FY2026 results reflected genuine progress on capital discipline. Group capex fell 18.4% to KSh 74.5 billion, with intensity at 17.5%, comfortably within management’s target range. Operating free cash flow grew 39%, supporting the capacity for a larger dividend payout. Direct costs rose only 1.7%, and lower interest costs, down 24.3%, contributed meaningfully to the improvement in net income.
Group EBIT guidance for FY2027 stands at KSh 180 to 187 billion, an 18.5% increase on FY2026. Analysts, who had forecast attributable net income of around KSh 86 billion ahead of the announcement, responded positively to the beat. The stock rose approximately 8% on results day. Consensus price targets now sit in the range of KSh 36 to 37, implying roughly 20 to 23% upside from pre-results levels, with a Buy consensus maintained across brokers.
Ndegwa summarised the year plainly stating,
“Strong execution in our first year of the 2030 strategy signals a great setup for delivering on our vision.”
With record profitability, a record dividend, and Ethiopia showing measurable improvement, the group enters FY2027 with a credible foundation and clear strategic direction.
