Safaricom Ethiopia has significantly narrowed its operating losses, with its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) loss declining by 96.5% to KES 434.4 million in the first half of the 2027 financial year (HY27).
This improvement comes as the Ethiopian operation continues to expand its customer base and grow revenue.
During the six months ended 30 September 2026, service revenue increased by 71.6% to KES 10.6 billion, while the three-month active customer base grew by 38.4% to 15.4 million.
Consequently, the Ethiopian operation accounted for 17% of Safaricom Group’s service revenue growth during the period, underscoring its increasing contribution to the Group’s overall performance.
Commenting on the performance, Safaricom Group CEO Peter Ndegwa expressed optimism about the business’s growth trajectory and improving commercial performance.
“Our performance reflects strong execution across our businesses, while Ethiopia’s sustained growth and commercial momentum brings us closer to our target of achieving EBITDA break-even by the end of this financial year,” said Ndegwa.
Improved Financial Performance Across Key Indicators
Beyond the reduction in EBITDA losses, Safaricom Ethiopia recorded improvements across other financial indicators, reflecting progress towards a more sustainable operating model.
Its Earnings Before Interest and Tax (EBIT) loss narrowed by 53.4% to KES 11.4 billion from KES 24.3 billion in HY26.
Net loss excluding minority interest also declined by 43.2% to KES 8.8 billion from KES 15.5 billion in the previous corresponding period.
The business further reduced its operating free cash flow deficit by 55.8% to KES 10.9 billion, compared to KES 24.5 billion in HY26.
Network Expansion and Digital Payments Drive Growth
Safaricom Ethiopia’s financial performance has been supported by continued investment in network expansion, growth in digital payments and the development of new business opportunities.
The company has prioritised network coverage and 4G capacity in high-demand areas while scaling personalised offers, digital recharge and AI-enabled onboarding to drive customer acquisition and usage.
As a result, its three-month active customer base grew by 38.4% to 15.4 million, with population coverage reaching approximately 60%.
Meanwhile, the company continued to expand its digital payments ecosystem by converting airtime retailers into active M-PESA outlets and enabling bank- and wallet-agnostic payments through universal QR codes.
During the period, it distributed 49,000 QR codes and recorded 101,000 one-month active merchants.
Beyond connectivity and payments, Safaricom Ethiopia also expanded its fixed and enterprise services in Addis Ababa through FTTH, FTTB and 5G Fixed Wireless Access.
Through fibre and infrastructure partnerships, the company aims to accelerate expansion while improving capital efficiency.
Read More: Beyond the Balance Sheet: How Safaricom Is Redefining Sustainable Growth
Group Net Income Rises 35.9% to KES 58.2 Billion
The progress in Ethiopia comes as Safaricom Group reports strong financial results for the first half of FY27, with net income increasing by 35.9% to KES 58.2 billion.
Group service revenue grew by 13.1% to KES 226.1 billion, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 27.5% to KES 129.2 billion, reflecting growth across its Kenya and Ethiopia operations.
In Kenya, the business recorded service revenue of KES 216 billion, representing an 11.3% increase.
Earnings Before Interest and Tax (EBIT) reached KES 101.8 billion, marking the first time the Kenyan operation has surpassed the KES 100 billion milestone in a six-month reporting period.
M-PESA also continued to contribute to the Group’s growth, with revenue increasing by 13.6% to KES 100.1 billion, crossing the KES 100 billion mark for the first time in a half-year period.
Beyond revenue growth, the platform continued to support financial inclusion through affordable transactions.
During the period, 53% of all transactions remained free or zero-rated. This included approximately 81% of Lipa na M-PESA and Pochi la Biashara merchant transactions and 63% of consumer transactions.
Community Investment Anchors Vision 2030 Ambitions
Safaricom Chairman Adil Khawaja attributed the Group’s performance to the resilience of its business and the execution of its long-term strategy.
“The results demonstrate the resilience of Safaricom’s business and the strength of our strategy. Importantly, this growth remains anchored in our purpose of transforming lives, ensuring that the value we create is reflected not only in our financial performance but also in the opportunities we enable for our customers, shareholders and the communities we serve,” said Khawaja.
During the half-year period, more than 1.5 million lives were impacted through Safaricom and M-PESA Foundations’ education, health and economic empowerment programmes.
The company also continued investing in youth development, with 60,000 young players participating in the fifth season of the Safaricom Chapa Dimba football tournament so far.
These initiatives form part of the company’s Vision 2030 ambition of becoming Africa’s leading purpose-led technology company.
