Safaricom shareholders have approved a final dividend of KSh1.15, or approximately USD 0.01, per share, bringing the telecommunications company’s total dividend payout for the 2026 financial year to a record KSh80.13 billion, equivalent to about USD 620 million.
The dividend was approved during Safaricom’s 18th annual general meeting held on July 31.
The final payment follows an interim dividend of KSh0.85, or approximately USD 0.01, per share distributed in March. Together, the payments bring the total dividend for the year ended March 31, 2026, to KSh2, or about USD 0.02, per share, the highest annual payout in the company’s history.
Safaricom attributed the record dividend to improved financial performance and progress in its expansion into Ethiopia.
The company’s share price rose by 50.3% during the financial year, increasing its market capitalisation to KSh1.10 trillion, or approximately USD 8.5 billion, as of March 31. Its market value subsequently increased to about KSh1.44 trillion, or USD 11.1 billion, in the weeks preceding the annual general meeting.
Safaricom Group CEO Peter Ndegwa described the period as a defining year for the company, which marked its 25th anniversary while recording its strongest financial performance to date.
Safaricom had maintained its dividend at the same level for three consecutive years as it absorbed the costs of establishing operations in Ethiopia and managed the effects of the birr’s depreciation following foreign exchange reforms introduced in 2024.
The company said the higher payout indicated that it was emerging from the investment phase of its Ethiopian operations. Safaricom Ethiopia is expected to reach break-even during the next financial year.
Including the latest payout, Safaricom shareholders have received approximately KSh280 billion, equivalent to about USD 2.2 billion, in cumulative dividends over the past five years.
Safaricom Chairman Adil Khawaja said Vodacom Group’s move to majority ownership would strengthen the companies’ long-standing partnership and provide Safaricom with access to Vodacom’s scale, expertise and regional reach.
Vodacom, through Vodafone Kenya, acquired an additional 15% stake in Safaricom from the Government of Kenya, increasing its shareholding to 55%. The Kenyan government retains a 20% stake, while public investors hold the remaining 25%.
Shareholders also re-elected Edward Okaro to the board, reappointed Ernst & Young as the company’s external auditor and approved resolutions related to the new shareholding structure. The resolutions included governance arrangements concerning chief executive nomination rights and board composition.
The final dividend is expected to be paid on or around September 4, 2026, to shareholders listed on the company’s register at the close of business on August 4.
Safaricom reported service revenue of KSh414 billion, equivalent to approximately USD 3.2 billion, for the year ended March 2026.
Its M-PESA mobile money platform generated KSh182.7 billion, or about USD 1.4 billion, in revenue and processed transactions valued at KSh41.68 trillion, equivalent to approximately USD 322 billion. The value of the transactions was equal to about 2.4 times Kenya’s gross domestic product.
Financial inclusion among Kenya’s adult population has increased from 26.7% in 2006 to 83.7%, with M-PESA playing a significant role in expanding access to financial services.
Safaricom remains one of East Africa’s most profitable telecommunications operators, with M-PESA continuing to support its growth and regional expansion, including its entry into the Ethiopian market.
Source: ITWeb Africa
