Safaricom’s M-Pesa business has crossed the Sh100 billion revenue mark for the first time in a six-month reporting period, cementing its position as a major driver of the telecommunications giant’s financial performance.
The milestone comes as Safaricom Group reported a 35.9 per cent increase in net earnings to Sh58.2 billion for the six months ended September 2026, buoyed by strong growth in its Kenyan operations and a significant reduction in losses at its Ethiopian subsidiary.
Group service revenue increased by 11.3 per cent to Sh226.1 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27.5 per cent to Sh129.2 billion.
Operating profit also recorded strong growth, climbing 39.8 per cent to Sh91.1 billion.
M-Pesa generated Sh100.1 billion in revenue, representing a 13.6 per cent increase compared to the corresponding period last year.
The performance highlights the growing significance of mobile financial services to Safaricom’s earnings, with the platform increasingly expanding beyond traditional person-to-person transfers into merchant payments, international transactions and financial services.
During the period, M-Pesa processed 27.4 billion transactions, representing a 25.2 per cent increase, while the combined value of transactions rose 16.6 per cent to Sh23.6 trillion.
Chargeable transactions grew by 48.2 per cent to 12.9 billion, accounting for 47 per cent of total transaction volumes, compared to 39.7 per cent in the previous financial year.
Consumer payments remained the largest revenue contributor, generating Sh40.8 billion, up 14 per cent, while business payments increased 14.7 per cent to Sh31 billion.
Financial services recorded the strongest growth, with revenue surging 55.3 per cent to Sh7.1 billion. Global payments revenue also rose 26.6 per cent to Sh2.8 billion.
Withdrawals were the only major category to record a decline, dipping 0.5 per cent to Sh18.4 billion.
Payments accounted for 75 per cent of incremental M-Pesa revenue, while business payments, global payments and financial services contributed 98.9 per cent of incremental transaction volumes.
In Kenya, Safaricom’s operations remained the group’s primary profit engine, recording a 13.8 per cent increase in net earnings to Sh66.3 billion.
Service revenue in the Kenyan market grew to Sh216 billion, while EBITDA increased 13.3 per cent to Sh128.9 billion.
The Ethiopian subsidiary also posted significant improvements, narrowing its net loss by 43.2 per cent to Sh8.8 billion.
Its service revenue surged 71.6 per cent to Sh10.6 billion, while the EBITDA loss narrowed by 96.5 per cent to Sh400 million. The operating loss also declined by 53.4 per cent to Sh11.4 billion.
The improved performance marks progress for Safaricom Ethiopia, which has required substantial investment since the group entered the market in 2022.
The narrowing losses are helping reduce the subsidiary’s drag on the group’s overall financial performance as its customer base and revenue continue to expand.
Safaricom Chief Executive Officer Peter Ndegwa attributed the group’s stronger performance to sustained growth in Kenya and a reduction in start-up losses in Ethiopia.
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