Safaricom Eyes 50% Profit Surge as Ethiopian Gamble Begins to Pay Off

Safaricom Projects Strong Growth Amid Ethiopian Turnaround

In a standout earnings forecast, Safaricom PLC is projecting up to a 50% surge in profit for the fiscal year ending March 2026. This optimistic outlook is largely attributed to the company’s strengthening position in Ethiopia and continued robust performance in Kenya.

Group Financials on the Rise

The company reported a group EBIT of KSh 104.1 billion, a notable jump from KSh 94.9 billion the previous year. Service revenue also rose sharply to KSh 371.42 billion, driven by:

• Increased mobile data usage,

• Record M-Pesa transaction volumes, and

• A growing customer base across both countries.

Ethiopia: From Risk to Reward

Safaricom’s Ethiopian operations—once plagued by regulatory hurdles, infrastructure challenges, and intense competition—are finally beginning to bear fruit.

“We are entering a new phase. Losses in Ethiopia have significantly narrowed, and customer adoption is gaining momentum,” — CEO Peter Ndegwa

The company's strategic patience is paying off as Ethiopia, one of Africa’s most underserved telecom markets, begins to yield tangible results.

Customer Growth Across Borders

The total customer base rose 16% to 57.1 million, with 44.36 million active users recorded by December 2024. This further cements Safaricom’s growing regional dominance as a telecom and fintech leader.

Investor Confidence and Economic Signals

While many companies listed on the Nairobi Securities Exchange are facing stagnation or regulatory pressures, Safaricom is charting a path of resilience and expansion. Its positive results offer a sense of optimism in a subdued economic climate.

With the Kenyan government choosing not to introduce new taxes in the latest budget, and Safaricom’s strong results leading the way, the national mood is cautiously upbeat.

“The focus going forward will be on deepening connectivity, financial inclusion, and delivering value beyond borders,” — Peter Ndegwa

Safaricom’s strategic investments and cross-border ambitions are redefining what’s possible for East Africa’s corporate giants—proving that calculated risks can yield continental rewards.

Photo: safaricom ltd

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