SAFARICOM PLC
In a year marked by formidable economic challenges, including currency volatility, inflationary pressures, and geopolitical tensions, Safaricom PLC demonstrated remarkable resilience, navigating headwinds to deliver robust financial results for the fiscal year ending March 31, 2025, for its Kenyan operations and a significant reduction in startup losses from its Ethiopian venture.
The telecommunications giant, headquartered in Kenya and listed on the Nairobi Securities Exchange, not only sustained growth across key revenue streams but also reinforced its commitment to innovation, sustainability, and shareholder value, cementing its position as a leader in East Africa’s digital economy.
The macroeconomic landscape of the year under review, tested businesses globally, yet Safaricom PLC’s strategic focus on digitization and customer-centric ser-vices bore fruit. Group revenue surged to KES. 388.7 billion, a significant increase from the previous year, underpinned by a 10.8% year-on-year growth in service revenue to KES. 371.4 billion. This performance was anchored by the stellar rise of M-PESA, mobile data, and fixed data services. M-PESA, Safaricom’s flagship mobile money platform, generated KES 161 billion in revenue, representing a growth of 15.1% year-on-year, up from the previous year, reflecting its deepening penetration in financial inclusion. Mobile data revenue climbed to KES 78.5 billion, accounting for nearly 21 % of service revenue, while fixed line and wholesale accounted for KES 16.8, billion, driven by a spike in consumer demand. Voice revenue accounted for KES 82 billion.
In the same year under review, Earnings Be-fore Interest and Tax (EBIT) rose to KES 104 billion from KES 80 billion. The growth is fuelled by stringent cost management and the scalability of high-margin digital services. Operating expenses, however, reflected the inflationary environment, with direct costs rising to KES 101 billion and other operating expenses to KES 104 billion. The year under review witnessed an increase in finance costs, linked to higher borrowings and increase in interest rates on loan facilities. Nevertheless, the company’s ability to navigate these pressures underscored its operational agility.
Safaricom’s balance sheet revealed strategic investments aimed at future-proofing its infrastructure. Total assets stood at KES 432.5 billion, with non-current assets, including property and equipment, reducing to KES 374 billion. This growth signalled aggressive capital expenditure in network infrastructure and technology, essential for supporting the 6.8% increase in total customers to 49.02 million.
In Kenya, the company’s fixed data market share stands at 36.7%, while its overall dominance in Kenya’s telecom sector remains unchallenged at 65.2%.
Meanwhile, Safaricom’s Environmental, Social, and Governance (ESG) initiatives gained momentum, exemplified by a landmark KES 15 billion Sustainability Linked Loan, the first of its kind in East Africa, to fund green technologies and reduce its environmental footprint.
Safaricom’s risk management framework, emphasizing credit quality and liquidity, further fortified its financial stability, with trade receivables prudently managed through allowances for expected credit losses.
Safaricom PLC’s FY2025 performance can be attributed to strategic foresight and operational excellence of a strong C-Suite of top notch managerial and fintech executives team lead by the first Kenyan-born MD and CEO, Dr. Peter Ndegwa CBS. Dr. Ndegwa’s performance at the help of Safaricom PLC, is a compel-ling narrative of resilience, innovation, and heartfelt leadership, having assumed the role in April 2020 amidst the global upheaval of the COVID-19 pandemic.
According to Dr. Ndegwa, Safaricom PLC delivered the exemplary results in the FY25 despite the tough operating environment brought about by numerous macroeconomic challenges. “We continued to pursue our strategic goal for the year which was to scale technology solutions to be Africa’s leading purpose-led technology company by 2030. As part of our strategic goals, we have focused on leveraging technology and driving customer innovation to offer relevant products, services and solutions to meet their needs. We remain committed in protecting shareholder value by achieving a strong performance in Kenya and making great milestones in Ethio-pia,” Dr. Ndegwa adds in the FY25 Report.
Looking Ahead, Dr. Ndegwa opines, “We are firmly focused on our ambition of being Africa’s leading Purpose-led Techology Company by year 2030. We will achieve this through different innovative propositions and immersive experiences across our ecosystem. Our initiatives include launching cutting-edge products, enhancing customer service, and creating engaging marketing campaigns that resonate with our customers.
By harnessing digital transformation, expanding infrastructure, and prioritizing sustainability, Safaricom PLC not only weathered economic storms but also laid the groundwork for further sustainable growth, and on course to be Africa’s leading purpose-led technology company, as per the new strategic orientation, Vision 2030.
