Safaricom grows profit 36% as Ethiopia business losses narrow

Plc said first-half profit climbed 36% after losses at the Ethiopian operation of Kenya’s biggest company by market value narrowed.

Group net income rose to 58.2 billion shillings ($447.9 million) in the six months through September from a year earlier, Chief Executive Officer Peter Ndegwa said at a briefing on Thursday.

Read: Vodacom’s Safaricom stake purchase struck down by Kenyan court

East Africa’s biggest mobile-network operator is investing in Ethiopia as it seeks growth beyond its dominant Kenya business. The expansion has taken on added importance after South Africa’s Vodacom Group increased its stake in the wireless carrier to about 55% in June, gaining control of the firm and more exposure to one of Africa’s fastest-growing telecommunications markets.

Read: Kenya to fast-track R31.28bn Safaricom-Vodacom deal appeal

In September, a Kenyan high court ordered that the 15% stake sale — which raised about $1.9 billion, be returned to the nation’s Treasury. An appeals court will fast-track an appeal of the ruling voiding the sale.

Ethiopian losses fell to 11.4 billion shillings from 13.3 billion shillings a year earlier, according to a results presentation.

For Ethiopia, the price increases introduced in December 2025 have held, fetching Safaricom more revenue per minute and per gigabyte, while the customer base has since passed 15 million, said Maryanne Thiong’o, a research and investment analyst at Nairobi-based Sterling Capital.

“Network spending in Ethiopia is falling now that the build-out is largely done, and management has committed to Ebitda break-even this financial year,” she said.

Read: Safaricom sale ruling risks Ruto’s $39bn project pipeline

Safaricom faces the risk of rising inflation in both nations and currency depreciation in Ethiopia, where the birr is taking strain, Thiong’o said.

“Much of Safaricom Ethiopia’s costs are in US dollars, so a weaker birr raises costs and shrinks the value of its revenue once converted into shillings,” she said. “A wider conflict in the Amhara and Oromia regions could also add to this pressure.”

Read: Vodacom to appeal Kenya court ruling on Safaricom stake sale

Shares in Safaricom, which accounts for about 40% of Nairobi’s benchmark stocks gauge, have advanced 20% this year, while the broader equities measure has increased almost 27%.

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