Safaricom Announces Interim Dividend Amid Sale of Govt Shares 

Listed telco Safaricom has announced an interim dividend for the financial year ending March 31, 2026, following a board meeting held on February 4, 2026.

In a notice dated February 5, the board of Safaricom resolved to approve the payment of an interim dividend of Ksh0.85 per ordinary share for the year ending March 31, 2026.

The dividend will be paid to shareholders whose names appear on the company’s register at the close of business on February 25, 2026, with payment scheduled for March 31, 2026.

According to the notice, only shareholders who are on the register of members at the close of business on February 25, 2026, will be eligible to receive the interim dividend.

This means that investors who purchase Safaricom shares after that date will not qualify for the payout.

Safaricom’s Impressive Growth

Safaricom’s decision to declare an interim dividend of Ksh 0.85 per share for the year ending 31 March 2026 reflects the company’s continued financial strength and growth momentum.

The payout marks an improvement from the previous financial year, when shareholders received a lower interim dividend of Ksh 0.65.

Safaricom has recorded sustained growth, cementing its position as East Africa’s most valuable company by market capitalization.

For the financial year ended March 31, 2025, the company posted revenues of about Ksh 388.7 billion, an increase of 11.2 percent year-on-year, while net profit rose by 10.8 percent to approximately Ksh69.8 billion.

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The performance was largely driven by the continued expansion of M-PESA, whose revenue grew by more than 15 percent to over Ksh 160 billion, accounting for nearly half of Safaricom Kenya’s service revenue.

Also, Safaricom has grown to a point where mobile data has overtaken voice as the company’s biggest revenue line.

In the half-year ended September 30, 2025, mobile data revenue in Kenya rose to Ksh44.5 billion, surpassing voice revenue for the first time at Ksh41.1 billion.

The shift has been driven by continued growth in 4G and 5G usage, higher smartphone penetration and rising demand for streaming, social media and digital services.

Ongoing Sale of Government Shares

The increased dividend comes at a time when the government is in the process of selling 15 percent of its remaining stake in Safaricom, a move aimed at raising revenue and broadening public ownership of the firm.

The sale, executed in December 2025, will raise about Ksh204.3 billion from the share disposal, with total proceeds rising to roughly Ksh244.5 billion after an upfront payment that replaces future dividends on the government’s remaining stake.

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After the transaction, Vodacom and Vodafone‑linked entities will control 55 percent of Safaricom, while the government will retain 20 percent and public investors 25 percent.

The Treasury has said the funds will be channeled through the National Infrastructure Fund and the Sovereign Wealth Fund to finance priority projects in roads, energy, and water, avoiding new taxes or additional borrowing.

The deal requires approval from the Cabinet, the National Assembly, the Capital Markets Authority, the Communications Authority, the Central Bank, and regional competition regulators.

On February 4, 2026, the National Assembly formally approved Sessional Paper No. 3 of 2025, clearing the way for the government to sell the shares.

The Capital Markets Authority, Competition Authority of Kenya, and Communications Authority have also told MPs that the pricing is competitive and that the transaction is unlikely to distort the market or harm minority shareholders.

With parliamentary and core regulatory approvals in place, the transaction now moves to completion, subject to remaining regional competition clearances.