Safaricom posts 52% rise in H1 2025 net income to KSh 42.8 billion, boosted by Kenya growth and narrowing Ethiopian losses.

Safaricom Plc (NSE: SCOM) reported a 52.1% increase in group net income to KSh 42.8 billion (~US$293 million) for the six months ended September 30, 2025. The strong results reflect growth in Kenya and an improved performance in Ethiopia, which hit 10 million users this May.

Kenyan Operations Lead the Charge

In Kenya, net income grew 22.6% to KSh 58.2 billion, service revenue increased 9.3% to KSh 194 billion, and EBIT rose 13.1% to KSh 89.5 billion. The gains were driven by M‑PESA and higher mobile-data usage.

Group-wide service revenue reached KSh 199.9 billion, up 11.1%, highlighting continued domestic momentum. Analysts attribute this growth to an expanded customer base and higher one-month active users.

Ethiopia: Losses Narrow

Safaricom’s Ethiopian subsidiary reduced losses by 20.1% to KSh (15.5 billion) despite currency and pricing challenges. (Safaricom Ethiopia) The improved performance signals progress in one of Africa’s fastest-growing but complex telecom markets.

Three-month active users in Ethiopia jumped 83.7% to 11.2 million, and one-month active users rose 90% to 8.51 million. Mobile data accounted for 66.7% of revenue, followed by voice at 22.1% and messaging at 11.2%.

Digital Services Driving Growth

M‑PESA remains the largest revenue contributor. The platform’s earnings grew 14% to KSh 88.06 billion (~US$681 million). Growth was supported by increased transaction frequency and a broader merchant network. (Nation Africa)

Mobile-data revenue in Kenya rose 13.4% to KSh 40.3 billion due to higher 4G/5G usage and new time-based bundles. Fixed services and IoT revenue grew 9.5% to KSh 9.8 billion, raising Safaricom’s fixed-internet market share to 34.3%.

Leadership Commentary & Strategy

Group CEO Peter Ndegwa said:

“This is a strong set of results and a solid start to our Vision 2030 strategy cycle. We are focused on segment-led execution and integrated solutions.”

The company also emphasized investments in communities. Its Citizens of the Future program will benefit 500 schools, provide 10,000 scholarships, and support over 56,000 digital literacy beneficiaries over five years.

In Ethiopia, the Safaricom Ethiopia Foundation invested ETB 650 million in education, youth, and economic empowerment projects.

“We have transformed the lives of over 22 million Kenyans through the Safaricom and M‑PESA Foundations. Purpose drives our growth,” Ndegwa added.

Market Value and Investor Perspective

Safaricom remains the most valuable stock on the Nairobi Securities Exchange, with a market capitalization of KSh 1.2 trillion (~US$9.3 billion). This represents nearly 40% of total NSE equity value.

The share price has risen 75.4% year-to-date, reflecting investor confidence. For global investors, Safaricom’s performance demonstrates how telecoms can combine a mature domestic market with frontier expansion in Africa.

Strategic Significance for International Markets

Safaricom’s growth story highlights:

• How mobile money and data services can reshape telecom revenue models.
• The potential of African frontier markets, like Ethiopia, despite macroeconomic challenges.
• The importance of balancing domestic stability with strategic regional expansion.

Outlook

Looking ahead, Safaricom aims to expand digital finance services and connectivity in Kenya while achieving sustainable profitability in Ethiopia. Analysts expect the company to leverage its integrated platforms to maintain strong growth, demonstrating that African telecoms can deliver scalable digital-first business models.

“Our journey over the past 25 years has been defined by purpose and innovation,” Ndegwa said. “We remain anchored in purpose, driving sustainable growth and positive change.”

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Safaricom’s 2025 Sustainability Report reveals $7.3 billion in total impact, setting a new ESG benchmark for African companies.

NAIROBI, Kenya – Kenya’s largest telecom, Safaricom Plc, on Tuesday released its 2025 Sustainable Business Report, reporting a total impact of KES 1.1 trillion ($7.3 billion) across social, environmental, and economic spheres. The figure far exceeds its financial profit and highlights the company’s commitment to linking business performance with societal benefits.

The report, published on October 8, was launched in Nairobi during Safaricom’s 25th anniversary celebrations. It frames sustainability as a central part of the company’s strategy.

“Sustainability is not an obligation for us; it is a business imperative,” Safaricom CEO Peter Ndegwa said at the launch. “Every shilling we earn should generate positive impact for people and the planet.”

Economic and Social Contributions

Safaricom said it contributed KES 809 billion to Kenya’s GDP through operations and value chain effects. The company also supports roughly 1.3 million jobs through agents, suppliers, and service providers.

“Foreign investors watch Safaricom as closely as South African banks,” said Aly-Khan Satchu, a Nairobi-based market analyst. “Its sustainability reporting sets a regional benchmark.”

The company highlighted how its digital financial services have helped expand economic inclusion. The Lipa Mdogo Mdogo plan has increased smartphone penetration from 44% to 50%, allowing more Kenyans access to mobile banking, e-learning, and health services.

Meanwhile, its DigiFarm platform issued KES 945 million in loans to 169,000 farmers, with 36% going to women and 17% to youth.

“Digital inclusion is a development accelerator,” Ndegwa said. “Every connected farmer or student becomes part of a new digital economy.”

Environmental Initiatives

The company reported planting 830,000 trees and restoring 694 hectares of degraded land in eight counties. These efforts bring the cumulative total to 2.3 million trees toward a 2030 goal of 5 million.

Through its M-PESA Green Points program, Safaricom collected 190 tonnes of e-waste and 62 tonnes of plastic, achieving a 99% recycling rate. It also fenced 15 kilometers of Kakamega Forest to prevent illegal logging.

“We need the private sector to treat climate action as an economic opportunity,” said Festus Ng’eno, Kenya’s Principal Secretary for Environment. “Safaricom shows how companies can lead by example.”

Governance and Risk Management

Safaricom achieved ISO 27701 certification for privacy management and reported cutting fraud cases by 87% using AI. It also tightened supplier due diligence and governance practices to align with the UN Sustainable Development Goals.

However, analysts say independent verification is vital for global investors.

“Impact numbers are impressive, but markets will demand third-party audits,” said Lisa Wentworth, ESG strategist at Ashbourne Advisory, London.

The company also disclosed a KES 30 billion sustainability-linked loan to finance green projects, including solar network sites and community initiatives.

Challenges Ahead

Despite progress, Safaricom acknowledged obstacles. Converting remote network sites from diesel to solar or hybrid energy is costly and will take years. Currency fluctuations and supply-chain issues could also slow progress toward net-zero emissions by 2050.

“Balancing profitability with sustainability in Kenya and across East Africa will define Safaricom’s next decade,” said Satchu.

Regional and Global Implications

Safaricom’s disclosure sets a template for African companies seeking to combine profits with social impact. Transparency International Kenya praised the report and urged similar accountability from other corporations.

“Corporate sustainability is no longer just a Western concern,” said Sheila Masinde, executive director of Transparency International Kenya. “Safaricom demonstrates that African firms can lead the conversation.”

The report will feed into Kenya’s Nairobi Securities Exchange ESG ratings for 2025–26. Analysts expect investors to study the data closely for independent verification, green financing potential, and risk assessments.

“The next growth phase for Kenya’s capital markets depends on ESG-linked investments,” said Kennedy Mburu, senior economist at KCB Capital. “Safaricom provides credibility to that shift.”

Outlook

Safaricom’s 2025 Sustainable Business Report illustrates how a major African company can measure and communicate its total societal value. If verified, its initiatives in renewable energy, digital inclusion, and environmental restoration could attract more international ESG-focused investors to Africa’s tech and telecom sectors.

Kenya’s CBK aims to cut mobile money fees by 2028, reshaping digital payments with global lessons for fintech and regulators.

Kenya to Slash Mobile Money Fees by 57%

NAIROBI, Kenya’s central bank has unveiled plans to slash average person-to-person (P2P) mobile money fees by more than half, a reform expected to ripple through Africa’s $1 trillion digital payments market.

The Central Bank of Kenya (CBK) said in a policy paper that it aims to reduce transfer costs from around KES 23 ($0.15) to KES 10 ($0.07) by 2028 under its new National Financial Inclusion Strategy 2025–2028.

From Sept. 1, CBK requires all variable-rate loans to use KESONIA,a new benchmark for setting interest rates.

A global benchmark for digital finance

Kenya, home to Safaricom’s M-Pesa, the world’s most successful mobile-money platform, has long set the pace in digital finance. Analysts say the reform could provide a global benchmark for regulators seeking to expand financial access while balancing sustainability of payment networks.

“Reducing fees is about more than just affordability. It’s about catalyzing inclusion and ensuring mobile money remains central to Africa’s growth,” said a Nairobi-based payments strategist quoted by Pulse Live Kenya.

Industry impact

The policy could hit revenues for telcos and banks that rely heavily on transaction fees. Safaricom, which controls nearly 99% of the Kenyan market, reported that mobile money generated KES 117.2 billion ($780 million) in revenue in its last fiscal year, according to Kenyan Wall Street.

But regulators argue that lower costs will expand volumes, compensating for thinner margins. The CBK believes cheaper transfers will encourage daily use, boost cross-border remittances, and draw millions of unbanked Kenyans into formal finance.

Balancing growth and sustainability

Still, concerns remain about whether agent networks — which earn commissions on transactions — can remain viable. A report from CIO Africa notes that CBK will work with operators to safeguard agents’ earnings while enforcing transparency in fee structures.

Inflationary pressures and cost-of-living concerns add urgency to the reforms. Kenya’s economy, East Africa’s largest, expanded by 5.6% in 2024, but households continue to struggle with high food and fuel costs, according to World Bank data.

Investor and global implications

For global fintechs and investors, Kenya’s decision signals both opportunity and risk. Lower fees could attract foreign players into a market long dominated by local incumbents, especially after the government moved to liberalize the telecoms and banking sectors.

“Kenya is once again setting the tone for Africa’s fintech ecosystem,” said an analyst at a Johannesburg investment bank. “What happens in Nairobi could easily influence Lagos, Johannesburg, and even regulators in India.”

The reforms arrive as African mobile money transactions surpassed $1.26 trillion in 2023, according to the GSMA. Kenya’s precedent could accelerate similar moves in Nigeria, Ghana, and Tanzania.

The road ahead

The CBK has opened a public consultation, with final regulations expected by mid-2026. Operators will be given a two-year transition window, with full compliance required by 2028.

If successful, Kenya could show that cutting digital transaction fees not only enhances inclusion but also spurs innovation in credit, savings, and insurance products linked to mobile money.