Mpesa drives growth as Safaricom hits record Sh99.7b profit

Brief

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**HEADLINE:** Kenya M-Pesa Revenue Growth 2026: Safaricom Hits Sh99.7B Record Profit

**META_DESCRIPTION:** M-Pesa drives 59.2% of Safaricom's revenue growth, hitting record Sh99.7B profit. What this means for Kenya's digital economy and fintech investors.

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## ARTICLE:

Safaricom has posted a record annual profit of Sh99.7 billion, with mobile money platform M-Pesa cementing its position as the engine of the telco's financial performance. The digital payments service contributed 59.2 percent of total revenue growth during the reporting period, while expanding its share of overall revenue to 45.6 percent—a structural shift that underscores the strategic pivot from traditional voice and data services toward financial technology.

### Why is M-Pesa's dominance reshaping Safaricom's business model?

M-Pesa's outsize contribution signals a fundamental transformation in East Africa's largest telecom by market cap. Over the past five years, the service has evolved from a convenience feature into a standalone revenue powerhouse, now accounting for nearly half of Safaricom's top-line income. This reflects not only sustained user growth across Kenya, Tanzania, and Mozambique, but also deepening monetization—transaction volumes are climbing, and the merchant ecosystem is maturing. The telco is no longer primarily a voice carrier; it is becoming a financial infrastructure provider. For investors, this de-risks revenue exposure to voice margin compression and positions Safaricom for higher-margin, more resilient earnings.

The Sh99.7 billion profit milestone comes against a backdrop of Kenya's digital payments penetration reaching critical mass. With over 50 million M-Pesa subscribers and transaction volumes regularly exceeding Sh4 trillion annually, the platform has achieved near-monopoly status in remittances, merchant payments, and bill settlement. Government digitalization initiatives—including enhanced tax collection and subsidy transfer mechanisms via mobile money—have further accelerated institutional adoption and trust in the ecosystem.

### What are the margins and competitive implications?

M-Pesa's high contribution to revenue growth typically translates to above-average margin accretion, since transaction fees and financial services revenue carry lower OPEX burden than voice or data provisioning. This operational leverage is visible in Safaricom's record profitability despite mature voice market growth and intensifying 4G/5G pricing pressure. Competitors including Airtel Kenya and Equity Group's Equitel are investing in alternative platforms, but none have achieved M-Pesa's scale or merchant lock-in—a five-to-ten-year competitive moat.

International expansion remains a medium-term growth vector. M-Pesa Tanzania's performance is improving, and regulatory sandbox approvals in Uganda and South Sudan signal appetite for regional replication. However, currency headwinds and lower smartphone penetration outside Kenya pose risks to growth rates.

### When will M-Pesa's contribution peak, and what comes next?

Saturation in Kenya's urban centers is approaching, but rural expansion, interoperability frameworks, and adjacent fintech services (lending, insurance, investment) offer runway. Safaricom is investing in Super App capabilities to capture a larger share of user wallet and transaction frequency. Institutional and cross-border use cases remain underexploited—a potential tailwind for the next three-to-five year cycle.

The record profit validates Safaricom's strategic bet on fintech. However, investor vigilance on churn, regulatory changes, and competitive entry into adjacent services remains essential.

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