Safaricom Declares Sh0.85 Interim Dividend for FY2026
Safaricom PLC has announced an interim dividend of Sh0.85 per ordinary share for the financial year ending March 31, 2026, in a move that signals strong financial health and continued commitment to rewarding shareholders.
In a public notice released after a board meeting held on February 4, 2026, the telecommunications giant confirmed approval of the payout, which represents a significant increase compared to the previous year.
“The Board of Safaricom PLC is pleased to announce that at its meeting held on February 4, 2026, it was resolved to approve the payment of an interim dividend of Sh0.85 per ordinary share for the year ending March 31, 2026,” the company said.
Payment Dates and Eligibility
The company stated that the dividend will be payable to shareholders listed on the Register of Members as at the close of business on February 25, 2026. Actual payments are expected to be made on or about March 31, 2026.
This means investors who purchase Safaricom shares before the record date will be eligible to receive the payout, a factor that often drives trading activity ahead of the deadline.
The announcement was issued with the approval of the Capital Markets Authority (CMA) in line with the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2023. Safaricom reiterated that, as a publicly listed company, it remains fully regulated by the CMA and adheres to strict disclosure requirements.
Company Secretary Linda Wambani signed the notice on February 5, 2026, confirming that the decision followed standard board procedures and complied with all statutory obligations.
54.5% Year-on-Year Growth
The interim dividend represents a 54.5 per cent increase compared to a similar payout in the previous financial year, underlining Safaricom’s improved profitability and cash flow position.
Market analysts view the jump as a strong vote of confidence by the board in the company’s future earnings, particularly after a robust half-year performance.
By issuing the dividend, Safaricom continues its long-standing policy of sharing profits with investors while maintaining adequate resources to fund network expansion and new digital services.
Strong Half-Year Performance
The dividend declaration follows impressive financial results released in November 2025 for the six months ended September 30, 2025.
During that period:
- Service revenue rose 11.1% to Sh200 billion, driven mainly by growth in mobile money and data services.
- Net income climbed 52.1%, supported by tighter cost controls and increased customer usage.
- M-Pesa and enterprise solutions remained the fastest-growing segments, benefiting from Kenya’s expanding digital economy.
Safaricom attributed the performance to higher smartphone penetration, increased 4G and 5G coverage, and the growing adoption of cashless payments by businesses and government institutions.
Share Price Reacts Positively
The Nairobi Securities Exchange responded favourably to the dividend news. Safaricom shares crossed the Sh30 mark, closing at Sh30.60 on Wednesday, a two per cent gain compared to the previous trading day.
The telco began the year with a share price of Sh28.35 and has since gained 7.94 per cent, ranking it 16th on the NSE in terms of year-to-date performance.
Analysts note that the stock has appreciated five per cent over the past four weeks, placing it 19th among the best performers on the exchange during that period.
What the Dividend Means for Investors
For retail and institutional investors, the interim dividend offers both immediate income and a signal of management confidence.
Financial experts say the increase shows that Safaricom is generating enough free cash flow despite heavy investments in infrastructure, cybersecurity, and regional expansion.
“Safaricom has demonstrated resilience even in a challenging economic environment. The higher dividend reflects strong fundamentals and disciplined capital allocation,” said a Nairobi-based investment analyst.
The payout also reinforces Safaricom’s reputation as one of the most reliable dividend stocks on the NSE, attracting pension funds and long-term investors seeking stable returns.
Growth Drivers for the Future
Looking ahead, several factors are expected to support Safaricom’s earnings:
- Expansion of M-Pesa ecosystem – Growth in merchant payments, international remittances, and savings products.
- Data consumption – Rising demand for video streaming, online learning, and e-commerce.
- 5G rollout – New opportunities in enterprise connectivity and smart solutions.
- Regional operations – Continued progress in the Ethiopian market and cross-border services.
The company has also invested heavily in fibre networks and cloud services, positioning itself as a digital technology provider rather than just a mobile operator.
Compliance and Transparency
Safaricom emphasized that the dividend process complies fully with CMA regulations and the Nairobi Securities Exchange listing rules.
The firm has maintained a culture of timely disclosure, publishing detailed financial statements and holding regular investor briefings to enhance transparency.
Corporate governance experts say such practices have helped Safaricom maintain investor trust even during periods of economic uncertainty.
Optimism on the NSE
The dividend announcement has boosted overall sentiment on the bourse, with traders expecting increased activity as the record date approaches.
Stockbrokers predict higher demand from both local and foreign investors seeking to lock in the Sh0.85 payout.
If the company maintains its growth trajectory in the second half of the financial year, shareholders could also look forward to a final dividend later in 2026.
Conclusion
Safaricom’s decision to declare a Sh0.85 interim dividend highlights the company’s strong performance and its commitment to delivering value to shareholders.
With rising revenues, expanding digital services, and a solid balance sheet, the telco remains a key pillar of Kenya’s capital markets and a favourite among income-seeking investors.
All eyes will now be on the full-year results to see whether the momentum can be sustained into the next financial period.