The firm has declared a dividend payout of Sh2 per share, totalling Sh80.1 bn East Africa’s biggest company, Safaricom Plc, has reported its strongest annual performance on record, driven by mobile money and data demand as its expansion in Ethiopia narrowed losses and boosted overall growth.
The Kenyan telecommunications operator said net income rose 67.3 per cent to Sh99.7 billion, marking the highest profit ever recorded by a company in East and Central Africa. As a result, the firm has declared a dividend payout of Sh 2 per share, totalling Sh 80.1 billion, representing a 66.7 per cent increase from the previous year.
This comprises an interim dividend of 85 cents per share, and a recommended final dividend of Sh 1.15 per share, subject to shareholder approval, underscoring the company’s resilient balance sheet and confidence in its long‑term growth outlook. “ We have shown strong execution in the first year of our five-year strategy, signalling a great setup for delivering our vision, ’’ Safaricom Group CEO, Peter Ndegwa said.
“ We delivered the strong performance, with acceleration in the second half, surpassing Group guidance with outstanding Kenya performance offsetting the impact of currency reforms and the timing of market repair actions in Ethiopia. ” The announcement saw the firm's share price at the Nairobi Securities Exchange (NSE) rise by close to eight per cent or Sh2.40, trading at Sh32.35 just moments before the close of trading day.
The positive sentiment extended to the broader market, largely driven by Safaricom’s outsized influence on the index. The NSE All Share Index (NASI) climbed 2.8 per cent on Friday, closing above 140 points. This surge increased the total market capitalization to Sh3.5 trillion, up from Sh3.41 trillion in the previous trading session.
The company’s service revenue increased 10 per cent to Sh414 billion as usage of mobile money and internet services expanded across its markets. Momentum strengthened in the second half, with service revenue rising 10.7 per cent year on year compared with 9.3 per cent in the first half.
M-Pesa remained the main growth engine, accounting for 59.2 per cent of incremental revenue.