Kenyan telecommunications company Safaricom Plc has announced dividends for its shareholders following the release of its financial results for the year ended March 31, 2026.
The company has proposed a total dividend of Ksh80 billion for the year ended March 31, 2026, following a strong rise in earnings.
Safaricom has raised its total dividend by 66.7 percent to Ksh2 per share for the year ended March 31, 2026.
This is after the telco posted a 67.3 percent rise in net profit to Ksh99.7 billion.
Safaricom Proposes Total FY26 Dividend of Ksh 2.00 Per Share
The declaration marks a sharp increase from the previous financial year, when Safaricom paid a total dividend of Ksh1.20 per share, comprising a final payout of Ksh0.65 and an interim dividend of Ksh0.55.
The proposed payout comprises a final dividend of Ksh1.15 per share, in addition to the interim dividend of KSh0.85 paid earlier this year. The final dividend of Ksh1.15 per share represents a 76.9 percent increase year-on-year from Ksh0.65.
Since FY2009, Safaricom has returned an impressive Ksh 692.25 billion to shareholders in dividends, including Ksh 280.06 billion distributed over the last five years alone.
The company said net income rose 67.3 percent year on year to Ksh99.7 billion.
Earnings before interest and tax (EBIT) climbed 58.5 percent to Ksh153.9 billion, while EBITDA increased 35.4 percent to Ksh220.5 billion. Service revenue grew 11.1 percent to Ksh414.1 billion.
M-PESA accounted for 43% of Safaricom’s total revenue of Ksh 427.5 billion, up from just 9% in FY10, underlining how far the business has shifted from voice-led telecoms to financial services-led growth.
In the 2026 financial year, M-PESA revenue grew 13.4 percent year-on-year to Ksh 182.7 billion.
This was driven by higher customer activity, expanded merchant acceptance across Pochi and Lipa na M-PESA, and increased adoption of digital wealth management services.
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Interim Dividends
This came after Safaricom in February lifted its interim dividend to a record Ksh 0.85 per share for the year ending 31st March 2026, marking a 54.5 percent increase from Ksh 0.55 in the previous year, following its strongest half-year profit performance on record.
The telco giant paid Ksh34.05 billion in interim dividends, with the government receiving Ksh11.92 billion, reflecting its 35 percent stake.
Safaricom Plc stated that the move underscored its commitment to delivering value to shareholders while continuing its mission to transform lives.
The dividend register closed on 25th February 2026, with payments scheduled on or around 31st March 2026.
The increase was supported by a strong jump in profitability for the six months ended 30 September 2025.
Net income surged 52.1 percent to Ksh 42.78 billion, the highest interim profit in the company’s history, while earnings before interest rose 34.9 percent to Ksh 101.29 billion, driven by improved margins and a stronger contribution from digital revenues.
This came as the government announced plans to sell a 15 percent stake in Safaricom Plc to Vodacom Group for approximately KSh 240 billion, with the proceeds intended to fund infrastructure projects.
According to Safaricom, the deal forms part of a wider internal restructuring that will consolidate Vodafone’s entire shareholding under Vodafone Kenya.
As part of the transaction, Vodacom Group Limited, which currently owns 87.5 percent of Vodafone Kenya, will acquire the remaining 12.5 percent stake from Vodafone International Holdings, giving it 100 percent ownership of Vodafone Kenya and an indirect 55 percent stake in Safaricom.
The deal was approved by Parliament on March 11, 2026, but it is facing legal challenges after a court order temporarily halted its execution.
It was designed to be executed through the Nairobi Securities Exchange (NSE) Block Trading Platform.
Also Read: Safaricom Reveals How Mama Mboga Fueled Its Ksh99.7 Billion Profit
Safaricom Shareholders after Govt Moves to Sale Its 15% Stake
Under the proposed transaction, Vodafone Kenya’s stake was to increase from 39.93 percent to 55 percent, while the Government of Kenya, through the Cabinet Secretary to the National Treasury, was expected to reduce its holding from 35 percent to 20 percent.
Other shareholders were largely expected to retain their positions. Standard Chartered Kenya Nominees Ltd A/C KE004667 held 0.95 percent, while Kenya Commercial Bank Nominees Limited A/C 1019D and A/C 9158 held 0.91 percent and 0.86 percent respectively.
Stanbic Nominees Limited also maintained its holdings, including NR7522171 at 0.61 percent and R6631578 at 0.47 percent.
Standard Chartered Nominees Resd A/C KE11401 and KE11443 held 0.50 percent and 0.41 percent, respectively.
The “Others” category accounted for 19.79 percent of the shareholding.
