Safaricom Reports Earnings Surge Amid Ethiopian Market Recovery
May 10, 2025 — Nairobi, Kenya
Telecommunications giant Safaricom has projected a significant earnings surge of up to 50% for the fiscal year ending March 2026, buoyed by strong performance in its Ethiopian operations and a steady rise in customer numbers across its markets.
In a statement released on Friday, Safaricom attributed the anticipated growth to a notable reduction in losses from its Ethiopia subsidiary, Safaricom Ethiopia, and a 16% increase in customer subscriptions. The improved outlook marks a major turnaround for the firm, which faced initial challenges during its entry into Ethiopia’s tightly regulated telecoms market.
“Our operations in Ethiopia have shown remarkable progress,” said Safaricom CEO Peter Ndegwa. “We’ve seen strong uptake of our services, improved infrastructure rollout, and a more stable regulatory environment. This has helped us narrow our losses and set a clear path toward profitability.”
Safaricom Ethiopia, which launched in October 2022 as the first private telecom operator in the country, had initially posted heavy losses due to high capital investment and operational costs. However, the company has since gained momentum, now boasting over 6 million subscribers and expanding its mobile money services, which recently received regulatory approval from the Ethiopian government.
The Kenyan market also played a key role in the group’s performance, with sustained growth in mobile data usage, M-Pesa transactions, and digital service adoption. The 16% rise in total customer numbers across both markets reflects strong consumer confidence and Safaricom’s expanding regional footprint.
“Our focus on innovation, customer experience, and financial inclusion continues to drive growth both in Kenya and Ethiopia,” Ndegwa added.
Analysts say the projected earnings boost could reinvigorate investor confidence in the firm, which had faced scrutiny over the viability of its Ethiopian venture. Safaricom’s stock on the Nairobi Securities Exchange responded positively to the announcement, gaining 4% in early trading on Friday.
The company is expected to release its full-year audited financial results later this month, with investors closely watching the performance of its M-Pesa platform and capital expenditure trends in Ethiopia.
As Safaricom cements its presence in East Africa’s largest telecom markets, the company appears well-positioned to maintain its regional dominance and deliver long-term shareholder value.