Safaricom, Kenya’s leading telecom operator, announced an 11% increase in net profit to $540 million for the fiscal year ending March 2024, marking a significant recovery after two years of earnings pressure. This growth was driven by a solid performance in Kenya and a dramatic reduction in losses from its Ethiopian operations.
The company’s group revenue reached a record $3 billion, bolstered by the strong contributions from mobile data services and M-Pesa, Safaricom’s mobile money platform. M-Pesa alone accounted for 44.2% of Kenya’s service revenue, underscoring its central role in the company’s business model. The customer base grew by 16%, reaching 57.1 million subscribers, reflecting the company’s strong market penetration.
In Ethiopia, Safaricom’s losses narrowed significantly by over 50%, from \$472.4 million in the previous year to $165.7 million in FY2024. The Ethiopian unit now contributes nearly 10% of the group’s revenue, with the customer base more than doubling to 8.8 million. Additionally, M-Pesa services in Ethiopia gained traction, with 2.4 million active users completing transactions worth more than $160 million. Safaricom’s initiative to enable remittances from Kenya to Ethiopia further strengthened its foothold in the region.
Safaricom’s CEO, Peter Ndegwa, shared an optimistic outlook for the future, projecting a 50% growth in earnings before interest and taxes (EBIT) for the next fiscal year. The company expects its Ethiopian operations to reach profitability by 2027, as it continues to expand its infrastructure and services in the country.
Despite challenges, such as currency depreciation and economic instability in Ethiopia, Safaricom’s strategic investments in digital services have positioned the company for sustainable growth in the coming years. This performance highlights Safaricom’s resilience and its ability to adapt to the complexities of regional markets.
