Kenya’s Safaricom posts 22.2% decline in profit despite huge revenue growth

Inimfon Asifa
Despite huge revenue growth,

Kenya’s largest telecom provider, Safaricom has revealed its financial records for the year ended March 31 2023. A look at the financial summary indicates the company recorded a profit after tax of 52.4 billion Kenyan Shillings. This represents a 22.2% decline from the 67.4 billion Shillings recorded in March 2022.

The audited financial results also showed that the company’s net income significantly declined to 62.3 billion shillings to 67.4 billion shillings recorded in the 2022 financial year. This also represents a 10.6% decline.

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The company, however, reported an outstanding growth in revenue, rising from 298.1billion shillings in 2022 to 310.9 billion shilling in 2023. This depicts a growth of 4.3%

Here is a breakdown of the financial results

Total revenue  

  • 2022 FY: KSh 298.1 billion
  • 2023 FY: KSh 310.9 billion
  • Change: +4.3%

Operating Profit

  • 2022 FY: KSh 109.1 billion
  • 2023 FY: KSh 84.9 billion
  • Change: -22.1%

Profit before income tax

  • 2022 FY: KSh 102.2 billion
  • 2023 FY: KSh 88.3 billion
  • Change: -13.6%

Profit after income tax

  • 2022 FY: KSh 67.4 billion
  • 2023 FY: KSh 52.4 billion
  • Change: -22.2%

During the company’s annual general meeting, the Chief executive officer, Peter Ndegwa explained that the company experienced such significant loss due to difficult economic conditions this period.

“This year, we all experienced tough headwinds, including high inflation, a depreciating shilling, severe drought, and failed rain seasons among others”.

Despite the loss, Peter Ndegwa announced their aim to fully become a tech company in 2023/24 financial year

“In the financial year 2023/24, our focus will be on scaling technology solutions that will see us fully transform into a tech organization.”

Safaricom has been granted license to launch M-Pesa in Ethopia

Following the review of the financial results, Ndegwa announced that Ethiopa has granted Safaricom to launch M-Pesa services.

I am delighted to announce that as of this morning,


 has officially been granted the licence to operate mobile money services in Ethiopia. We look forward to launching M-PESA in the coming months.

Safaricom, along with its consortium partners, paid a sum of $150 million (equivalent to Sh20.5 billion at current exchange rates) as a license fee to the National Bank of Ethiopia (NBE) to secure a permit for its mobile money service, M-Pesa Mobile Financial Service.

This permit allows the company to operate in Ethiopia, and its new subsidiary is the first foreign-owned unit to be granted this license.

This move is expected to increase the popularity of the service, which was first launched in Kenya in 2007.

Safaricom Plc, is the largest mobile network operator in Kenya and one of the most profitable companies in East and Central Africa.  The company is well-known for its innovative products and services, such as M-Pesa, which has revolutionized mobile money transfer and financial services in Kenya and beyond.

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