Safaricom stock (KE0000000547): Profit jumps as Kenya and Ethiopia drive growth

Safaricom reported a 67.3% surge in net income to KSh99.7 billion for the 2025/26 financial year, driven by strong service revenue growth in Kenya and Ethiopia.

Safaricom PLC has reported a sharp increase in profitability for the 2025/26 financial year, with net income rising by 67.3% to KSh99.7 billion, according to a company update published on May 7, 2026.Dawan Africa as of 05/07/2026 The Kenyan telecom operator also saw group service revenue climb 11.5% to KSh414.1 billion (about $3.2 billion), reflecting continued demand for mobile and data services in East Africa.Connecting Africa as of 05/07/2026

As of: 10.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Safaricom PLC
• Sector/industry: Telecommunications
• Headquarters/country: Nairobi, Kenya
• Core markets: Kenya, Ethiopia
• Key revenue drivers: Mobile voice, data, M?Pesa, fixed broadband
• Home exchange/listing venue: Nairobi Securities Exchange (NASE: SCOM)
• Trading currency: Kenyan shilling

Safaricom: core business model

Safaricom is Kenya’s leading telecommunications provider and one of the most influential corporate players in East Africa, offering mobile voice, mobile and fixed data, messaging, and digital financial services.StockAnalysis as of 05/10/2026 The company’s business model centers on a large subscriber base in Kenya, where it dominates the mobile market, and an expanding footprint in Ethiopia, where it operates as a licensed telecom operator.Connecting Africa as of 05/07/2026

A key pillar of Safaricom’s strategy is its M?Pesa mobile money platform, which has become a major source of transaction?based revenue and a driver of financial inclusion across Kenya and neighboring markets.Business Daily Africa as of 05/07/2026 By bundling telecom services with digital payments, Safaricom strengthens customer stickiness and creates recurring revenue streams that are less sensitive to pure voice?tariff competition.Connecting Africa as of 05/07/2026

Main revenue and product drivers for Safaricom

For the year ended March 31, 2026, Safaricom’s group service revenue reached KSh414.1 billion, up 11.5% from the prior year, with Kenya?based service revenue growing 10% to KSh400.8 billion.Connecting Africa as of 05/07/2026 The company’s Ethiopian operation contributed KSh14.1 billion (about $109 million) in service revenue, an 86.6% year?on?year increase, as network coverage expanded to about 60% of the population.Connecting Africa as of 05/07/2026

On the subscriber side, Safaricom Group’s three?month active customers rose 25.4% year?on?year to 71.56 million, while one?month active users increased 14.2% to 50.7 million, indicating both broad reach and ongoing engagement.Connecting Africa as of 05/07/2026 In Ethiopia, three?month active customers jumped 54.2% to 13.6 million, supported by the rollout of 3,504 network sites and improved coverage.Connecting Africa as of 05/07/2026

Why Safaricom matters for US investors

For US investors, Safaricom offers exposure to a high?growth African telecom and fintech ecosystem, where mobile penetration and digital payments are still expanding rapidly.Connecting Africa as of 05/07/2026 The company’s dominance in Kenya and its strategic push into Ethiopia position it at the center of regional digital?infrastructure development, which can be attractive as part of a diversified emerging?markets portfolio.Business Daily Africa as of 05/07/2026

At the same time, US?based investors face currency risk from the Kenyan shilling and regulatory and political uncertainties typical of frontier markets, which can amplify volatility in Safaricom’s share price.StockAnalysis as of 05/10/2026 The stock trades on the Nairobi Securities Exchange under the ticker SCOM, and its performance is closely tied to macroeconomic conditions in Kenya and Ethiopia, including inflation, interest rates, and foreign?exchange dynamics.StockAnalysis as of 05/10/2026

Conclusion

Safaricom’s latest results highlight a strong earnings rebound, with net income jumping 67.3% to KSh99.7 billion and service revenue growing 11.5% to KSh414.1 billion for the 2025/26 financial year.Dawan Africa as of 05/07/2026 Growth in both Kenya and Ethiopia, supported by an expanding subscriber base and rising M?Pesa activity, underpins the company’s improved profitability.Connecting Africa as of 05/07/2026

For US investors, Safaricom offers a leveraged play on African digitalization and mobile?money adoption, but it also carries currency, regulatory, and political risks typical of frontier?market equities.StockAnalysis as of 05/10/2026 The stock’s performance will depend on how well management navigates macroeconomic headwinds in Kenya and Ethiopia while continuing to scale its network and fintech platforms.Business Daily Africa as of 05/07/2026

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.