Safaricom PLC announced a significant 52.1% increase in its half-year net profit, reaching KSh 42.8 billion for the six months ending September 30, 2025, up from KSh 28.1 billion in the same period last year. The record performance was primarily fueled by double-digit growth in its M-Pesa and mobile data services, coupled with a substantial reduction in losses from its expanding Ethiopian operations.

The company's group service revenue climbed 11.1% year-on-year to KSh 199.9 billion. The results, released on Thursday, November 6, 2025, underscore a strategic shift in consumer behavior and the company's successful diversification from traditional voice and messaging services.

M-Pesa and Data: The Twin Engines of Growth

M-Pesa remains the cornerstone of Safaricom's profitability, with revenue from the mobile money platform growing by 14% to KSh 88.1 billion. This growth was driven by increased transaction volumes and an expanding merchant network. M-Pesa now accounts for 45.4% of the company's total service revenue in Kenya. Group CEO Peter Ndegwa highlighted the launch of "Fintech 2.0," an AI-powered upgrade to the M-Pesa platform, which has doubled transaction processing capacity to over 12,000 per second, enhancing reliability and scalability.

In a landmark shift, mobile data revenue surpassed voice revenue for the first time in the company's history. Data revenue surged by 18.2% to KSh 44.47 billion, while voice revenue saw a marginal decline. Safaricom's Chief Finance Officer, Dilip Pal, noted this change in customer preference, stating, "Mobile data revenue has for the first time surpassed voice revenue and now accounts for 21 percent of total service revenue." This growth is supported by increased 4G and 5G smartphone usage and the introduction of new data bundles.

Ethiopian Venture Shows Promise

The company's investment in Ethiopia is beginning to yield positive results, with losses narrowing significantly. The net loss attributable to Safaricom from its Ethiopian subsidiary decreased by 20.1% to KSh 15.5 billion. Service revenue in Ethiopia surged by 136% to KSh 6.2 billion, driven by strong customer acquisition, which saw the active user base grow to 11.1 million. Mr. Ndegwa expressed confidence in the Ethiopian market, noting that macroeconomic stability is improving, with the country no longer classified as hyperinflationary as of June 2025. However, the company has revised its break-even forecast for the Ethiopian operation to 2027, citing currency depreciation challenges.

Impact on the Kenyan Economy and Market

Safaricom's strong performance is a significant indicator for the Kenyan economy. As the most valuable company on the Nairobi Securities Exchange (NSE), its financial health has a broad impact. The company's market capitalization stands at approximately KSh 1.21 trillion, representing about 40% of the entire NSE equity market. Its share price has reflected this positive performance, gaining over 77% year-to-date as of November 6, 2025.

The company remains a major contributor to the national treasury, having remitted KSh 90.51 billion in taxes, duties, and license fees to the Kenyan government during the six-month period. The sustained investment in its network, with a capital expenditure of KSh 34.2 billion in Kenya, continues to support the country's digital infrastructure.

Looking ahead, Mr. Ndegwa stated, “This is a strong set of results, and a solid start to our Vision 2030 strategy cycle, maintaining our FY26 guidance. We remain focused on executing our strategy through segment-led execution and integrated solutions.” The company's focus on scaling innovation and enhancing customer experience is expected to drive future growth, reinforcing its position as a leading technology and financial services provider in the region.