Safaricom PLC, Kenya’s largest telecommunications provider, has officially crossed the KShs 364 billion mark in service revenue for the financial year ending March 31, 2025, a new milestone that underscores the company’s robust market leadership and adaptability in a complex economic environment.

With a 10.5% year-on-year increase in service revenue to KShs 364.3 billion, Safaricom Kenya has not only met but exceeded expectations across multiple performance indicators.

Solid Growth Amid a Challenging Environment

This financial success comes despite significant headwinds, including high interest rates, inflationary pressures, and shrinking consumer purchasing power.

CEO Peter Ndegwa highlighted this in his address, stating that the performance was a result of “great strategy execution and a resilient economy”, as the company stayed true to its purpose of “transforming lives”.

Safaricom’s strategic commitment to becoming Africa’s leading purpose-led technology company by 2030 continues to gain traction, and FY25 marked the final phase of the company’s five-year Vision 2025 strategy.

The Kenyan unit, which remains the group’s cash cow, delivered strong revenue growth across all its major business lines: M-PESA, mobile data, voice, and fixed internet.

Revenue Breakdown: M-PESA and Data Take the Lead

M-PESA

M-PESA, the mobile money platform that has become the backbone of Kenya’s digital economy, generated KShs 161.1 billion, up 15.2% YoY. The service now represents 44.2% of total Kenyan service revenue. Growth was driven by:

1. 10.5% increase in active customers to 35.82 million
2. 20.3% rise in chargeable transactions per user
3. Expanding the merchant ecosystem, including 675,860 active Lipa Na M-PESA merchants and over 1.15 million business wallets via Pochi La Biashara

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M-PESA Is Eating Everything Except Ethiopia

Mobile data revenue

Mobile data revenue surged 15.2% YoY to KShs 72.86 billion, now contributing 20% of Kenyan service revenue. Key contributors included:

1. Increased data usage per subscriber (+13.9% to 4.22GB)
2. Growth in affordable 4G device penetration (4G devices up 32.4% to 22.31M)
3. Rise in smartphone usage and 5G uptake (5G devices up 57%)

Voice revenue

Voice revenue showed modest growth of 1.6% to KShs 80.78 billion, boosted by affordability strategies that reduced the average call rate per minute by 11.4%.

• Fixed service and wholesale revenue rose 12.9% YoY to KShs 17.07 billion, boosted by a 21.3% increase in home fibre (FTTH) customers and 17.5% growth in enterprise customers.

Profitability and Dividend Stability

Safaricom Kenya’s earnings before interest and tax (EBIT) rose 13.0% to KShs 158.15 billion, while net income climbed 12.7% to KShs 95.47 billion, reinforcing its strong cash generation ability even under economic pressure.

In a show of stability, the Board proposed a final dividend of KShs 0.65 per share, bringing the total FY25 dividend payout to KShs 1.20 per share (or KShs 48.08 billion total), consistent with FY24 despite currency depreciation in Ethiopia affecting consolidated returns.

Customer Base and Market Position

As of March 2025:

• One-month active customers reached 37.1 million, a 7.1% YoY increase.
• Safaricom maintained a commanding 65.2% market share in Kenya’s telecom sector, according to the Communications Authority of Kenya.

The company continues to invest in AI, big data, and customer segmentation to personalise offers and boost customer retention.

This includes innovations like the Emerald post-paid plan, Family Share bundles, and S-Hook initiatives.

READ ALSO:

What Safaricom Is Doing Right to Retain 37 Million Customers

Looking Ahead: Vision 2030 and New Frontiers

Safaricom’s forward-looking strategy includes:

1. Scaling the M-PESA super app to offer credit, savings, and insurance
2. Deepening penetration into the enterprise and public sector digital ecosystem
3. Expanding home and fixed broadband to 1 million+ homes
4. Driving financial inclusion and digital connectivity in Ethiopia, where M-PESA was recently launched

FY26 guidance projects:

1. Group Earnings from operations between KShs 144–150 billion
2. Kenyan Earnings from operations in the range of KShs 170–173 billion
3. Capex of KShs 54–57 billion for Kenya and KShs 18–21 billion for Ethiopia

Looking Ahead

Safaricom Kenya’s record KShs 364 billion revenue milestone is not just a financial achievement; it is a reflection of strategic foresight, operational agility, and unwavering customer focus.

With continued investment in innovation, infrastructure, and inclusivity, the telco giant is positioning itself not just as Kenya’s telecom leader but as a transformative tech powerhouse for Africa.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.