Earlier today Safaricom released its Annual Report for the financial year ending March 2025 (FY25) reveals a strong performance for the company’s core Kenya operations, despite challenging economic conditions. As one of the largest and most influential technology companies in Africa, Safaricom continues to lead the market with a diversified portfolio of digital services, including mobile data, voice, M-PESA, and fixed broadband. This analysis explores the key financial metrics, business unit performance, and strategic initiatives driving Safaricom’s success in Kenya over the past year.

Executive Summary

Safaricom Kenya delivered a robust financial performance in FY25, achieving a total revenue of KES 388.7 billion, reflecting an 11.2% year-on-year growth from KES 349.4 billion in FY24. Service revenue grew by 10.5% to KES 364.3 billion (FY24: KES 329.8 billion), driven by gains in M-PESA, mobile data, and fixed services.

Net income for the Kenyan operations reached KES 95.5 billion, up 12.7% from KES 84.7 billion in FY24, highlighting strong cost management and revenue diversification. Earnings before interest, tax, depreciation, and amortization (EBITDA) also grew by 13.0% to KES 158.15 billion during the year, reflecting effective cost controls and operating efficiencies.

Safaricom’s Position In Kenya’s Telecommunications Sector

Safaricom maintains a dominant position in Kenya’s telecommunications sector, with a commanding 66% market share in GSM services and a network that covers 98% of the population. Safaricom has a substantial customer base, including over 37 million 30-day active customers, 36 million active M-PESA users, and nearly 299,000 active M-PESA agents.

This extensive reach is supported by a robust infrastructure backbone, including 18,300 km of fiber optic networks and 694,000 homes passed with FTTH, positioning Safaricom as the leading broadband provider in the country.

In addition, Safaricom has over 1.1 million 5G customers, reflecting the rapid uptake of high-speed internet in Kenya. This wide coverage and extensive customer base demonstrate Safaricom’s critical role in connecting Kenyans to digital services and financial platforms.

Key Achievements & Milestones In FY25

Over the past five years, Safaricom has executed a comprehensive strategy to strengthen its core business while expanding into new growth areas. Key outcomes from this period include:

• Mobile Connectivity: 2X growth in mobile data revenue and a 58.4% increase in voice usage, supported by the widespread rollout of 4G and 5G networks, enhancing connectivity for millions of Kenyans .
• M-PESA and Financial Services: 3X growth in transaction value, 4X increase in transaction volume, and 10.4X growth in free transactions, reflecting the platform’s critical role in Kenya’s financial system .
• Fixed Business: Doubling the number of homes passed with fiber and a 4X increase in connected homes, establishing Safaricom as the leading broadband provider in Kenya .
• Enterprise and Public Sector: Positioned as the technology partner of choice for the public sector, supporting major government programs in healthcare, financial inclusion, and digitization .
• Ethiopia Expansion: Established a greenfield operation in Ethiopia, accelerating commercial momentum and building a strong customer base despite initial challenges. Over the past financial year, Safaricom has delivered significant milestones across its core business segments, reflecting its commitment to delivering value to customers and shareholders alike. Key achievements include:
• Brand and Purpose: Celebrated 24 years of operations, reinforcing its role as a purpose-led technology company. M-PESA marked its 18th anniversary, and the M-PESA Foundation reached 15 years of impactful community support.
• Financial Growth: Achieved double-digit growth in core financial metrics, including service revenue and EBITDA, despite a challenging economic environment.
• Customer-Centric Focus: Enhanced customer experiences through AI-driven segmentation and personalized offerings, improving retention and loyalty.
• Digital Leadership: Scaled digital capabilities with over 70 AI/ML models in production, supporting smarter, data-driven decision-making across the business.
• Purpose and Brand: Celebrated 24 years of operations, with M-PESA marking its 18th anniversary and the M-PESA Foundation reaching 15 years of impact.
• Financial Performance: Delivered strong topline growth despite economic pressures, driven by double-digit growth in financial services (M-PESA) and mobile data.
• Customer-Centric Innovations: Focused on personalized customer experiences through AI-driven segmentation and targeted product offerings.
• Digital Transformation: Continued scaling AI capabilities, with over 70 AI/ML models in production to enhance customer experiences and operational efficiencies.

M-PESA – Safaricom’s Financial Backbone

M-PESA, which celebrated its 18th anniversary in 2025, remains the financial backbone of Safaricom’s digital ecosystem. Launched in March 2007, M-PESA has grown into one of the world’s most successful mobile money platforms, driving formal financial inclusion in Kenya from just 19% in 2006 to 84.8% in 2024.

It now supports over 35 million active customers, handles 4,500 transactions per second, and contributes over 8% to Kenya’s GDP. The platform supports a wide range of financial services, including peer-to-peer transfers, digital lending, savings, and international remittances, making it a critical enabler of financial inclusion and economic empowerment in Kenya.

Additionally, M-PESA has created a vast ecosystem of financial services through strategic partnerships, including the M-PESA GlobalPay virtual VISA card, which allows customers to make secure online payments globally, and integrations with platforms like PayPal, Western Union, and AliPay for seamless international transactions.

Beyond its financial impact, M-PESA has sustained over 1 million jobs annually through its ecosystem of agents, developers, and dealers, highlighting its critical role in supporting livelihoods and small businesses across Kenya. M-PESA continues to be the financial backbone of Safaricom, contributing a massive 44.2% of total service revenue in Kenya. M-PESA revenue rose 15.2% to KES 161.1 billion in FY25, driven by increased transaction volumes and a broader range of financial services, including digital credit, savings, and insurance products.

Key M-PESA metrics for FY25 include:

• Total M-PESA transaction volume: 37.15 billion (up 29.5% YoY)
• Total M-PESA transaction value: KES 38.29 trillion (up 1.6% YoY)
• Active one-month M-PESA customers: 35.82 million (up 10.5% YoY)
• M-PESA ARPU: KES 395.22 (up 9.4% YoY)

The continued expansion of the M-PESA agent network, which grew by 14.1% to 298,890 agents, demonstrates the ongoing growth of Safaricom’s financial services ecosystem. M-PESA now accounts for approximately 44.2% of Safaricom Kenya’s service revenue, reflecting its centrality to the company’s growth strategy.

Digital Financial Services – Expanding Beyond Payments

Safaricom’s digital financial services strategy extends beyond basic consumer payments, encompassing a range of innovative products that address the diverse financial needs of individuals and businesses in Kenya. These include:

• Fuliza – An overdraft facility that allows M-PESA users to complete transactions even when they have insufficient funds. Fuliza customers grew by 18.2% to 7.9 million in FY25.
• M-Shwari – A mobile banking service offering instant, paperless loans and savings to M-PESA customers. It now has 20.5 million active customers and disbursed KES 167 billion in loans in FY25, reflecting its critical role in providing financial access to millions of Kenyans.
• Ziidi – A money market fund that enables M-PESA users to invest their savings for short-term returns. The fund now has 1.5 million opt-ins and over KES 13 billion in assets under management, positioning it as a key savings product within the M-PESA ecosystem.
• Pochi La Biashara – A business wallet designed for micro and small enterprises, allowing them to separate personal and business transactions. The service now has 1.3 million active merchants, reflecting its growing role in supporting small businesses and entrepreneurs.
• M-Ratiba – A personal financial management tool that helps customers plan and track their expenses, set savings goals, and automate recurring payments via M-PESA. M-Ratiba now has 2 million users.
• Mobile Device Insurance – Rapidly gaining traction, with over 411,000 insurance policies issued.

Together, these financial products form a critical part of Safaricom’s broader strategy to deepen financial inclusion in Kenya, empowering both consumers and businesses to better manage their financial health. Safaricom’s M-PESA ecosystem continues to expand, supported by a growing merchant network and diversified financial use cases through the M-PESA business app, which now has 1.3 million active merchants. reflecting its growing role in supporting small businesses and entrepreneurs.

M-PESA Super Apps – Transforming Digital Financial Services

M-PESA’s super apps for both consumers and businesses have emerged as critical platforms for digital financial services in Kenya. The consumer super app, which had 13.7 million downloads and 4.7 million active customers (up 29.5% YoY), processed transactions worth KES 2.3 trillion (up 16.1% YoY) in FY25.

The business super app, with 1.3 million downloads and 301,000 active merchants (up 111.5% YoY), processed transactions worth KES 896.2 billion (up 77.3% YoY), reflecting the growing role of digital financial platforms in the Kenyan economy.

These super apps have become essential tools for both consumers and businesses, offering a wide range of services, including payments, savings, loans, insurance, and merchant services, further entrenching M-PESA’s position as a critical enabler of financial inclusion and economic growth in Kenya.

Mobile Data – Safaricom’s Fastest Growing Segment

Mobile data continues to be one of the fastest-growing business lines for Safaricom, reflecting the ongoing shift towards digital services. In FY25, mobile data revenue surged 15.2% to KES 72.9 billion, driven by increased data usage per chargeable subscriber, which grew 13.9% to 4.32 GBs.

The number of one-month active mobile data customers also rose by 11.2% to 30.69 million, with the number of customers using more than 1GB of data increasing by 18.1% to 11.86 million. This growth is supported by a 32.4% increase in 4G devices to 22.31 million and a remarkable 57.0% rise in 5G devices to 1.05 million. Mobile data now accounts for approximately 20.0% of Safaricom’s service revenue in Kenya.

Its strategic investments in expanding 4G and 5G networks have been critical in supporting this growth. Safaricom’s efforts to drive device affordability through partnerships with East African device manufacturers have also contributed to this success. The average revenue per user (ARPU) for mobile data increased by 10.1% to KES 267.11, indicating strong customer demand for high-speed internet services.

Voice and Messaging – Stable But Modest Growth

Voice revenue grew 1.6% YoY to KES 80.8 billion, supported by a 6.5% increase in one-month active voice customers to 30.12 million, although this was offset by a 6.9% decline in voice ARPU to KES 233.73. Messaging revenue also posted a modest 1.6% gain to KES 12.48 billion, reflecting stable demand for basic communication services.

Consumer Business – Delivering For Customers While Growing The Core

Safaricom has focused on delivering seamless, personalized digital experiences to its customers. Key initiatives include:

• Integrated Propositions: Products like ‘All-in-One’ bundles, ‘Emerald Post Paid’, and ‘Family Share’ plans are designed to enhance customer loyalty and drive higher ARPU.
• 4G Penetration: Partnered with East African device manufacturers to drive 4G adoption, increasing the number of 4G devices to over 22 million.
• Youth Engagement: Targeted offers for youth segments, driving higher engagement and data consumption across the network.

Fixed & Wholesale Services – Steady Growth & High Potential

Safaricom’s fixed business continues to demonstrate impressive growth, reflecting the company’s commitment to building a robust broadband infrastructure. In FY25, fixed service and wholesale transit revenue grew 12.9% to KES 17.07 billion, driven by a 21.3% rise in FTTH (Fiber-to-the-Home) customers to 301,451 and a 17.5% increase in fixed enterprise customers to 69,874.

This segment now contributes approximately 5.0% to Safaricom’s service revenue, reflecting its growing importance as businesses and homes demand higher-speed connectivity and more reliable broadband options. To enhance customer satisfaction and retention, Safaricom has also introduced innovative products like 1000Mbps high-speed (gigabit) connections for both residential and enterprise customers.

Enterprise & Public Sector – The Digital Transformation Partner of Choice

Safaricom has positioned itself as a critical digital transformation partner for both the public and private sectors in Kenya. In FY25, the company recorded a 52% growth in ICT and cloud revenues, reflecting its deepening role in enabling digital transformation for government programs and large enterprises. Key initiatives include:

• Government Revenue Collection – Supporting digital tax and revenue collection systems that streamline government financial operations.
• Universal Health Coverage (UHC) – Partnering with the government to expand access to healthcare through digital platforms and integrated data systems.
• Financial Inclusion – Powering financial services for millions of underserved Kenyans through innovative solutions like the Hustler Fund, which disbursed KES 14.2 billion to 20.6 million customers, and the Inua Jamii cash transfer program, which reached 1.7 million beneficiaries with KES 4.3 billion in financial support.
• Empowering Farmers – Distributing 8.5 million fertilizer bags to 6 million farmers through government subsidy programs, helping to boost agricultural productivity and rural livelihoods. Safaricom has emerged as the digital transformation partner of choice for both enterprises and the public sector. Key milestones in FY25 include:
• ICT and Cloud Services: Delivered 52% growth in ICT and cloud revenues, supporting government programs like universal health coverage and financial inclusion.
• Government Collaborations: Supported initiatives like the Hustler Fund, Inua Jamii cash transfer programs, and digital agricultural platforms, impacting millions of Kenyans.

Safaricom’s Vision 2030 – Six Big Strategic Priorities

Safaricom’s Vision 2030 strategy outlines a transformative roadmap focused on six core priorities designed to sustain its leadership in Kenya’s digital economy and expand its footprint across Africa:

1. Consumer Business – Scaling beyond connectivity to offer personalized, segment-led digital experiences that enhance customer loyalty and satisfaction.
2. Enterprise Services – Becoming the digitization partner of choice for public sector and enterprise clients, leveraging advanced ICT, cloud, and AI solutions to drive productivity and efficiency.
3. Fixed Services – Scaling broadband reach to over 1 million homes and businesses, supporting the digital needs of modern consumers and enterprises with always-on, high-speed connectivity.
4. Financial Services – Accelerating M-PESA’s growth beyond payments to include savings, credit, insurance, and wealth management solutions, transforming it into a comprehensive digital financial ecosystem.
5. Ethiopia Expansion – Achieving EBITDA profitability in Ethiopia by FY27, leveraging lessons from the Kenyan market and establishing M-PESA use cases in one of Africa’s largest economies.
6. Technology Leadership – Investing in AI, IoT, and secure digital platforms to enhance customer experience, drive operational efficiency, and support next-generation digital services .

What Does This All Mean For Safaricom Going Forward?

Safaricom’s strong performance in FY25 demonstrates the resilience and adaptability of its business model in the face of economic challenges and shifting consumer preferences. The company’s success is built on a diversified revenue base that spans mobile connectivity, digital financial services, enterprise solutions, and fixed broadband – a strategic mix that has enabled it to weather industry disruptions and maintain its market leadership in Kenya. Several key insights emerge from this analysis:

• M-PESA as a Financial Backbone: M-PESA continues to be the lifeblood of Safaricom’s financial performance, contributing nearly half of the company’s total service revenue. Its continued evolution into a full-fledged financial ecosystem, with offerings like Ziidi, Pochi La Biashara, and M-Ratiba, positions Safaricom as a critical enabler of financial inclusion and economic empowerment in Kenya.
• Data-Led Growth: The rapid growth in mobile data revenue, supported by widespread 4G and 5G adoption, highlights Safaricom’s success in transitioning from a voice-centric business to a data-driven digital services provider.
• Enterprise and Public Sector Partnerships: Safaricom’s deepening role as a digital transformation partner for enterprises and government agencies underscores its strategic importance to Kenya’s digital economy. This positioning is likely to drive long-term revenue growth as businesses and governments continue their digital journeys.
• Infrastructure Investment as a Competitive Advantage: The company’s significant investments in fiber, 5G, and AI technologies provide it with a robust infrastructure backbone, positioning it well to support Kenya’s growing demand for high-speed internet and smart digital services.
• Challenges and Opportunities Ahead: While Safaricom’s Vision 2030 strategy outlines a clear path for future growth, the company will need to navigate potential regulatory shifts, intensifying competition, and evolving customer expectations to sustain its market leadership.

In summary, Safaricom’s ability to innovate, scale, and deliver exceptional customer experiences will be critical to maintaining its leadership position in Kenya’s fast-evolving digital economy.