Safaricom PLC (NSE: SCOM) on Thursday announced financial results for the year ended March 31, 2026, reporting Group service revenue of KES 414.1 billion and net income of KES 100 billion, as it maintained growth in Kenya while scaling its Ethiopia operations.

In a press release dated May 7, 2026, the telecoms and mobile money operator said it will pay a total dividend of KES 80.1 billion, equivalent to KES 2 per share, comprising an interim dividend of KES 0.85 per share and a proposed final dividend of KES 1.15 per share, subject to shareholder approval. Safaricom said the total dividend represents a 66.7% increase from the previous year.

The company said customer numbers across the Group reached 71.6 million during the period, reflecting operations in Kenya and Ethiopia.

Safaricom’s results matter for Kenya’s business landscape because the company is one of the Nairobi Securities Exchange’s most heavily traded counters and a major contributor to corporate tax receipts and household income through dividends. The operator is also a key channel for digital payments and credit through M-PESA, which underpins significant volumes of retail transactions and small business cashflows.

Peter Ndegwa, Group Chief Executive Officer, Safaricom PLC, said performance in Kenya helped offset headwinds in Ethiopia. “We delivered 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,” Ndegwa said.

In Kenya, Safaricom said service revenue grew by 10% to KES 400.8 billion, while earnings before interest and tax (EBIT) rose 15.3% to KES 182.3 billion.

Adil Khawaja, Chairman, Safaricom PLC, said the Group maintained profitability while continuing investment in Ethiopia. “We have sustained strong growth in service revenue, driven by double digit growth in Kenya and accelerated growth in Ethiopia, while maintaining profitability despite continued investment in Ethiopia,” Khawaja said. He added that the company was “beginning to see the benefits of scale in Ethiopia, with improving commercial momentum and narrowing start up costs.”

Safaricom said Ethiopia contributed 12.5% of the Group’s service revenue growth during the year. The company reported that subscriber numbers in Ethiopia rose to 13.6 million, with network coverage reaching 60% of the population supported by 3,504 sites. Safaricom also reported that service revenue in Ethiopia grew 86.6% to KES 14.1 billion.

Mobile data revenue rose 18.3% to KES 92.9 billion, while M-PESA revenue increased 13.4% to KES 182.7 billion, according to the company. Safaricom said M-PESA in Kenya had 41 million active customers during the year under review.

The performance underscores continued consumer demand for mobile broadband and the centrality of mobile money to Kenya’s payments ecosystem. For investors, the announced dividend implies sustained cash generation, although the final payout remains subject to approval. For the wider market, Safaricom’s Ethiopia trajectory remains a key variable in the Group’s medium-term profitability as the operator balances capital expenditure, regulatory changes and currency considerations in the new market.

Dilip Pal, Group Chief Finance and Innovation Officer, Safaricom PLC, said the company will continue investing in capacity and systems while moving into the next year of its strategy. “We continue to invest in our network and IT systems to support capacity upgrades and user experience. Ethiopia's performance shows reduced losses relative to the previous period, greatly boosting Group performance,” Pal said.

Safaricom said it would move into the second year of its Vision 2030 strategy, with the proposed final dividend expected to be tabled for shareholder approval in line with company and regulatory requirements.