Safaricom Plc reported its highest annual profit in company history on Wednesday, with net income surging 67.3 percent to $767 million for 2025, a result that marks the largest profit ever recorded by any company in East and Central Africa.
The Kenyan telecommunications operator attributed the breakthrough performance to rapid growth in mobile money and data services, with its M-Pesa platform once again providing the dominant share of new revenue. Service revenue rose 10 percent to approximately $3.08 billion for the year, accelerating in the second half to 10.7 percent growth compared with 9.3 percent in the first half.
M-Pesa accounted for 59.2 percent of incremental revenue, expanded 13.4 percent year on year, and lifted its share of total company revenue to 45.6 percent. Connectivity revenue, Safaricom’s largest segment, rose 6.9 percent, supported by a 14.4 percent increase in mobile data usage. Fixed services climbed 12.2 percent on the back of rising consumer demand.
Earnings before interest and taxes grew 15.3 percent to approximately $1.40 billion, while total earnings rose 24.7 percent to roughly $915 million.
Ethiopia, where Safaricom has deployed more than $1.2 billion since entering the market, continued to weigh on results but showed meaningful progress. The company cut its Ethiopia losses by half during the year, reducing the drag on group earnings while signalling that the long-term regional investment is beginning to mature.
Safaricom announced a dividend of Sh2 per share, representing a total payout of approximately $616 million, up 66.7 percent from the prior year. The distribution comprises an interim dividend of 85 cents per share and a final dividend of Sh1.15.
“This is a major milestone for Safaricom. Our dividend payout has risen above the levels recorded before COVID and prior to our Ethiopia investment,” said Chief Executive Officer Peter Ndegwa, who added that the company achieved the payout without increasing debt levels despite its ongoing Ethiopian expansion.
