Nairobi – Kenyan telecommunications giant Safaricom has reported a 40% increase in first-half earnings before interest and taxes (EBIT), supported by stronger performance in its domestic market and a significant reduction in losses from its Ethiopian operations.
The company said group EBIT rose to 91.1 billion Kenyan shillings ($701.58 million) for the six months ended September 2026, compared with 65.2 billion shillings recorded during the same period last year.
Chief Executive Officer Peter Ndegwa said the reduction in start-up losses in Ethiopia was beginning to make a meaningful contribution to the group's overall performance, alongside solid growth in Kenya.
Safaricom maintained its full-year EBIT guidance of between 180 billion and 187 billion shillings, signalling confidence in its financial outlook.
Group service revenue increased by 13% to 226.1 billion shillings during the first half of the financial year, reflecting continued growth in the company's telecommunications and digital services businesses.
Ethiopia Operations Show Improvement
Safaricom's Ethiopian operations recorded a substantial improvement, with its EBIT loss narrowing to 11.4 billion shillings from 24.3 billion shillings in the corresponding period last year.
The company entered Ethiopia in 2022 as the country's government began opening its tightly controlled telecommunications market to foreign competition.
Safaricom sees Ethiopia, Africa's second-most populous country, as an important market for long-term expansion and future revenue growth.
The company is targeting break-even in Ethiopia by the end of its current financial year, as it continues to reduce start-up costs and expand its operations.
Majority-owned by South Africa's Vodacom Group, Safaricom remains one of East Africa's leading telecommunications operators, with interests spanning mobile connectivity and financial technology.
Source: Reuters
Reporting: George Obulutsa
Editing: Alexander Winning& Subhranshu Sahu
