Peter Ndegwa leads Safaricom to historic $3 billion revenue

Key Points

• Safaricom’s revenue hit $3.01 billion, driven by strong performance in Kenya and Ethiopia, as it closed its five-year strategy to become a tech-focused operator.
• M-PESA revenue surged 15.2% in Kenya, generating $1.25 billion and accounting for over 44% of local service revenue amid rising financial service adoption.
• Ethiopia now contributes nearly 10% of revenue, with 8.8 million subscribers and growing M-PESA activity, as Safaricom eyes profitability there by FY2027. 

Safaricom, East Africa’s largest telecom operator, led by Kenyan tycoon Peter Ndegwa, has posted a historic performance for the financial year ending March 2025, becoming the first company in the region to cross the $3 billion revenue threshold. This milestone comes as the Nairobi Securities Exchange-listed firm wraps up its five-year transformation strategy to reposition itself from a telco into a fully-fledged purpose-led technology company.

Kenya, Ethiopia fuel record earnings

According to its recent update, the group reported an 11.2 percent rise in total revenue to Ksh388.7 billion ($3.01 billion) and a 10.8 percent increase in net income to Ksh69.8 billion ($540.48 million) for the year ended March 2025. Safaricom Ethiopia contributed nearly 10 percent of group revenue, with over 8.8 million subscribers and 2.4 million active M-PESA users transacting Ksh20.6 billion ($159.5 million).

Kenya remained the group’s core market, generating Ksh364.3 billion ($2.82 billion) in service revenue, up 10.5 percent. M-PESA, marking its 18th year, grew 15.2 percent to Ksh161.1 billion ($1.25 billion), accounting for 44.2 percent of Kenya’s service revenue. Connectivity revenue, spanning mobile data and voice, rose 6.5 percent to Ksh185.2 billion ($1.43 billion). Mobile data surged 15.2 percent to Ksh72.9 billion ($564.47 million) amid growing 4G adoption, while voice revenue rose 1.6 percent to Ksh80.8 billion ($625.63 million), bucking global trends.

Group CEO of Safaricom, Peter Ndegwa, attributed the historic feat to team dedication, customer loyalty, and the strong strategy. He said, “This year’s results are more than a reflection of past performance; they are a foundation for our vision of becoming a purpose-led tech company in Africa by 2030. We are entering a new phase of growth, and we will continue harnessing innovation for social good and shaping the future of Kenya, Ethiopia and beyond.” 

Safaricom’s storied performance and dividend milestone

Founded in 1993 and headquartered in Nairobi, Safaricom has evolved into a leading provider of mobile connectivity, cloud services, and financial technology through its widely used M-PESA platform. Under the leadership of CEO Peter Ndegwa—who owns a 0.016 percent stake in the company, equivalent to 6.2 million shares—Safaricom is navigating a fast-changing telecom landscape with renewed strategic focus.

For the year ended March 2025, the company is set to distribute a total dividend of Ksh48.08 billion ($372.17 million), including a final payout of Ksh0.65 ($0.036) per share. This follows an interim dividend of Ksh0.55 ($0.03) per share disbursed in March 2025. Safaricom invested Ksh18 billion ($139.4 million) over five years in education, health, environment, and empowerment, impacting over 13 million lives. It expects Ethiopian operations to become profitable by FY2027 as it exits peak investment and expands financial services in the market.