Robust earnings fuel increased returns
The dividend increase follows strong half-year results published in November 2025. Safaricom reported service revenue of 200 billion shillings for the six months ended Sept. 30, 2025, up 11.1% year-over-year. Net income surged 52.1% from the same period in 2024, driven by improved cost management and higher customer engagement.
M-Pesa, the company’s flagship mobile money platform, continues driving growth as more Kenyans embrace digital payments. Transaction values climbed significantly, reflecting deepening penetration across East Africa’s largest economy.
Dividend policy maintains consistency
The latest payout aligns with Safaricom’s dividend policy of returning profits to shareholders while preserving capital for expansion. The company distributed interim dividends of 0.55 shillings in both 2025 and 2024, and 0.58 shillings in 2023.
The telecommunications giant’s strategy balances immediate shareholder rewards with long-term infrastructure investment in expanding digital services.
Government stake sale under consideration
The announcement comes as Kenya’s parliament reviews a proposal for the government to sell part of its Safaricom stake to Vodacom, the South African telecommunications company that already holds a significant ownership position. The potential transaction could reshape the ownership structure of East Africa’s most valuable publicly traded company.
Safaricom dominates Kenya’s telecommunications sector with more than 45 million mobile subscribers and serves as a critical component of the country’s digital economy infrastructure. The company’s M-Pesa platform processes billions of dollars in transactions annually, functioning as a de facto banking system for millions of Kenyans without traditional bank accounts.
The Capital Markets Authority approved publication of Wednesday’s dividend notice but issued a standard disclaimer stating it bears no responsibility for the information’s accuracy.
Investors will watch whether the increased interim dividend signals similarly robust full-year payouts when Safaricom reports annual results later this year.
