Safaricom’s Record Sh80.1 Billion Dividend Signals a Turning Point in Ethiopia. 5 Developments Investors Shouldn’t Miss.

Safaricom has increased its dividend for the first time in three years as the financial burden of building its Ethiopian business begins to ease. Shareholders approved a record Sh80.13 billion payout for the year ended March 31, 2026, following stronger group performance and expectations that the Ethiopian operation is moving closer to covering its operating costs.

Investors will receive a total dividend of Sh2.00 per share, comprising a final dividend of Sh1.15 and the Sh0.85 interim dividend paid in March. The final portion is expected to be paid on or around September 4 to shareholders who are on the company’s register at the close of business on August 4.

Safaricom had maintained its dividend at the same level for three consecutive years while financing the launch and expansion of its Ethiopian operations. The company also faced additional pressure from the depreciation of the Ethiopian birr after the country introduced foreign exchange reforms in 2024, which reduced the value of earnings and assets when converted into Kenya shillings.

Safaricom Ethiopia is now expected to reach EBITDA break even during the current financial year. This would mean its revenue is sufficient to cover ordinary operating expenses before interest, taxes, depreciation and amortisation are included. Although that does not amount to full profitability, it would mark an important step towards reducing the subsidiary’s drag on the wider group.

The improved outlook has coincided with a sharp rise in Safaricom’s share price. The stock gained 50.3% during the financial year, raising the company’s market value to Sh1.10 trillion by the end of March 2026. Its market capitalisation later climbed to about Sh1.44 trillion in the weeks before the Annual General Meeting. Including the latest payout, shareholders will have received approximately Sh280 billion in dividends over the past five years.

New Ownership Structure
The AGM also approved governance changes following Vodacom Group’s acquisition of an additional 15% stake from the Kenyan government through Vodafone Kenya Limited. Vodacom now controls about 55% of Safaricom, while the government holds 20% and public investors retain the remaining 25%. The transaction did not involve the issuance of new shares, meaning the holdings of minority shareholders were not diluted. However, Vodacom’s majority position gives it greater influence over Safaricom’s board and senior leadership appointments.
Some major decisions will continue to require wider approval. Material changes to the Safaricom brand or expansion into countries beyond Kenya and Ethiopia will need support from at least 75% of directors as well as government consent.
Safaricom is now seeking to build on its stronger financial position by expanding M-PESA, broadband access, affordable smartphones, artificial intelligence services and its 4G and 5G networks.