Safaricom (SCOM) H1 2026 earnings summary

Executive summary

• Celebrated 25 years, surpassing 60 million customers group-wide, with strong commercial momentum in Kenya and Ethiopia and major initiatives including Fintech 2.0 and AI adoption.

• Maintained robust financial performance, with Vision 2030 strategy and sustainability targets, including net zero by 2050.

• Group active customers rose 19.7% YoY to 62.27Mn (three-month), with Kenya holding a 65.1% GSM share.

Financial highlights

• Group service revenue rose 11.1% YoY to KShs 200Bn; Kenya up 9.3% to KShs 194Bn, Ethiopia up 136% to KShs 6.2Bn.

• Group EBIT increased 54.5% to KShs 65.2Bn; net income up 52.1% to KShs 42.8Bn; Kenya net income up 22.6% to KShs 58.2Bn.

• Ethiopia's losses reduced by 20% YoY to ETB 15.5Bn, with currency depreciation a key factor.

• Group CapEx declined 25.5% to KShs 43.7Bn, with CapEx intensity at 21.3%.

• Net debt/EBITDA ratio improved to 0.69; free cash flow declined 24% due to working capital and higher tax payments.

Outlook and guidance

• FY26 group guidance maintained, with focus on scaling 4G+, fintech, fixed broadband, and M-PESA in Ethiopia.

• Ethiopia break-even target remains FY 2027, with management confident despite FX and market repair delays.

• H2 priorities include expanding digital and financial services and addressing regulatory and operational challenges in Ethiopia.