Safaricom reports FY EBIT of Ksh104.1B ($807M), beating guidance. Ethiopia expansion grows despite currency, security hurdles.
Nairobi, Kenya | May 9, 2025 — Safaricom Plc, Kenya’s largest telecommunications firm, outperformed expectations with earnings before interest and tax (EBIT) rising to KSh104.1 billion ($807 million) for the year ending March 2025. The result beat the company’s projected range of KSh94–100 billion ($729–775 million) and confirmed its resilience amid regional and regulatory headwinds.
“We’ve outperformed on the core business while navigating a complex expansion,”
— Peter Ndegwa, CEO, Safaricom Plc
Earnings Beat Despite Expansion Costs
Safaricom had earlier lowered expectations in November 2024, citing:
- Soaring spectrum fees in Kenya
- Heavy infrastructure investment in Ethiopia
But the strong performance of M-Pesa—which now powers over 40% of Safaricom’s service revenue—helped counter a slowdown in voice and SMS.
The company now projects full-year revenue to exceed KSh350 billion ($2.7 billion), internal sources revealed.
Ethiopia: Big Market, Big Headaches
Safaricom’s bold Ethiopia bet, launched in October 2022, continues to be a financial strain and a growth engine. As of March 2025:
- 9+ million subscribers have joined
- Full M-Pesa Ethiopia rollout is imminent, after a greenlight from the National Bank of Ethiopia in late 2024
Yet, challenges persist:
- The Ethiopian birr has dropped 30% in two years
- High inflation and patchy infrastructure hinder margin growth
- Political and security risks remain acute
“It’s the most ambitious expansion in our corporate history,”
— Michael Joseph, Founding CEO & Board Member
Despite the challenges, Safaricom sees Ethiopia as a long-term value driver, not just a cost center.
Kenya Remains the Revenue Fortress
Back home, M-Pesa is evolving beyond payments into:
Other strong growth verticals:
- Home Fibre internet, competing directly with ISPs
- Enterprise cloud solutions for public and private sector clients
“We are not just a telco anymore. We’re a tech-driven platform company,”
— Peter Ndegwa, CEO
Shareholding Structure & Market Reaction
Safaricom is jointly owned by:
📈 Following the earnings announcement, Safaricom shares rose 2.8%, outperforming the NSE 20 Share Index.
Outlook: A Tech Platform in Transition
Safaricom’s FY2025 results show a company in active transformation. New initiatives include:
- Doubling its tower count in Ethiopia
- Launching AI-powered customer service by Q3
- Expanding M-Pesa across regional markets
Still, analysts caution that high growth is now tied to high-volatility geographies.
“Safaricom’s fundamentals are solid, but the risk profile is evolving,”
— Faith Njagi, Telecom Analyst, IBIS Capital
✅ Bottom Line
Safaricom has proven its mettle—beating forecasts while navigating Africa’s most complex telecom market. As the firm shifts from traditional telco to digital platform giant, Ethiopia will be its proving ground. The stakes are high—but so is the potential payoff.
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