Safaricom PLC, Kenya’s largest telecommunications company, has announced a significant Sh48.08 billion dividend payout for the financial year ending March 31, 2025. This substantial payout comes after the company reported a 10.8% increase in net income driven by impressive growth in both its mobile money and broadband services. The total dividend includes a final dividend of 65 cents per ordinary share, in addition to the interim dividend of 55 cents per ordinary share that was already paid out earlier in the year.
Financial Highlights: Safaricom’s Record Growth in FY2025
For the financial year ending March 31, 2025, Safaricom reported a net income of Sh69.8 billion, an increase of 10.8% from the previous year. The company’s strong performance was fueled by double-digit growth in key business segments, particularly its mobile money and broadband services. This success is particularly impressive considering the competitive nature of the telecommunications and tech industries.
Safaricom’s total revenue for FY2025 reached Sh388.7 billion, reflecting an 11.2% growth year-on-year. The company’s performance is a clear indication of the resilience of its diverse portfolio, which now extends far beyond traditional mobile services.
Safaricom’s Strategic Shift: A Technology Company
Over the past five years, Safaricom has undergone a profound transformation, evolving from a traditional telecommunications provider to a full-fledged technology company. This transformation was a central aspect of the company’s five-year strategy cycle, which concluded in FY2025.
Dr. Peter Ndegwa, CEO of Safaricom, noted that the company’s continued focus on innovation within its TechCo product portfolio and the ongoing digitization of Kenya and Ethiopia played a pivotal role in driving growth. Ndegwa also emphasized that the company’s strong results reflect the dedication of its employees, the loyalty of its customers, and the strength of its overall strategy.
In addition to its core mobile and broadband services, Safaricom has expanded its reach into other key sectors such as mobile money through M-PESA, as well as emerging areas like wealth management and credit solutions.
Mobile Money and Broadband Services: The Growth Engines
M-PESA, Safaricom’s mobile money platform, continued to be a key driver of the company’s growth in FY2025. M-PESA generated Sh161 billion, contributing 44.2% of Kenya’s service revenue. The platform’s year-on-year growth was an impressive 15.2%, driven by the increasing diversification of services beyond basic payments. M-PESA now offers a range of financial services, including wealth management, credit solutions, and savings products, which have resonated strongly with Kenyan customers.
Similarly, Safaricom’s broadband services experienced substantial growth, benefiting from increased demand for high-speed internet and data services, especially in light of the ongoing digital transformation in Kenya. The company’s investments in infrastructure and its strategic focus on expanding broadband access in both urban and rural areas have paid off, with broadband services contributing significantly to the overall revenue growth.
Ethiopia Expansion: A Key Growth Area
Safaricom’s expansion into Ethiopia has also played a crucial role in the company’s growth trajectory. Ethiopia, Africa’s second-most populous country, represents a large and untapped market for Safaricom. The company entered Ethiopia in 2022 through a subsidiary, Safaricom Telecommunications Ethiopia, marking a major milestone in its regional expansion strategy.
As of FY2025, Ethiopia contributed nearly 10% of Safaricom’s total revenue. The company’s operations in Ethiopia are still in their early stages, with significant investments made in infrastructure and customer acquisition. However, management has expressed confidence that Ethiopia will turn profitable by the financial year 2027.
Safaricom’s expansion into Ethiopia is part of a broader regional strategy to become a leading player in Africa’s digital economy. By tapping into the growing demand for digital services in countries like Ethiopia, Safaricom is positioning itself for long-term growth in the East African region.
Community Impact and Corporate Social Responsibility
Beyond its impressive financial performance, Safaricom has also made significant investments in corporate social responsibility (CSR) initiatives. Over the past five years, the company has invested more than Sh18 billion in programs that focus on education, health, environment, and economic empowerment. These initiatives have had a meaningful impact on communities across Kenya and Ethiopia.
Safaricom’s commitment to social responsibility is also reflected in its efforts to improve financial inclusion through platforms like M-PESA, which has helped millions of Kenyans access essential financial services. In addition, the company’s ongoing support for environmental sustainability and health initiatives underscores its role as a corporate citizen dedicated to making a positive difference in society.
Safaricom’s Outlook: A Bright Future Ahead
Looking ahead, Safaricom remains optimistic about its future prospects. The company has successfully navigated a period of significant transformation, and its strong financial results reflect the success of its strategic vision. The company plans to continue expanding its digital services, focusing on areas such as mobile money, broadband, and TechCo products, while also exploring new markets like Ethiopia.
As Safaricom moves forward, the company will continue to prioritize innovation, sustainability, and community support, ensuring that it remains at the forefront of Africa’s digital revolution.
Conclusion
Safaricom’s performance in FY2025 highlights the company’s strength as a leading technology company in East Africa. With impressive growth in mobile money, broadband services, and Ethiopia expansion, coupled with a commitment to corporate social responsibility, Safaricom is well-positioned for future success. The Sh48.08 billion dividend payout reflects the company’s confidence in its continued growth and its dedication to rewarding its shareholders.