M-Shwari, Safaricom’s popular mobile loan and savings platform, reported a decline in revenue following service disruptions.
The platform’s revenue dropped by 14.4% in the first half of the year compared to the previous period.
The glitches, which caused intermittent outages and delayed transactions, impacted millions of active users and disrupted normal loan disbursements and repayments.
Despite the challenges, the number of active M-Shwari customers actually rose by 17.6%, indicating continued demand for the service.
According to Safaricom’s financial results, the value of disbursements on M-Shwari fell by 1.8%, while repayments rose by 8.1%, and the repayment rate improved to 108%.
The average loan size decreased by nearly 10%, suggesting more cautious borrowing behaviour amid the technical issues.
Business Growth Overview
Safaricom Plc’s net earnings for the first six months of the year increased by 52.1 percent to Ksh42.8 billion, driven by reduced losses in Ethiopia.
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The telco recorded service revenue of Ksh 200 billion, with the Kenyan subsidiary accounting for Ksh 194 billion, representing a 9.3% increase.
Net income also showed strong growth, climbing 22.6% to reach 58.2 billion shillings.
Revenue from Ethiopia surged by a whopping 136 percent to hit Ksh6.2 billion.
This success was driven by targeted initiatives, including the B-Live program for young customers and customized solutions for MSMEs and transport workers.
The adoption of 4G+ devices continues to accelerate, with more than 25.7 million users now utilizing these faster smartphones.
Ethiopia Growth Amid Challenges
Safaricom Ethiopia continued to make commercial strides despite facing a depreciating currency and a complex regulatory landscape.
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The company narrowed its net losses by 20.1% year-on-year, bringing them down to 15.5 billion shillings, even as the Birr’s depreciation accounted for 35% of the net loss.
Just 2.5 years after its commercial launch, Safaricom Ethiopia surpassed 10 million active customers over a three-month period, marking a significant milestone.
Nearly 3,300 network sites have been deployed, quickly reaching half the scale of Safaricom’s Kenyan network, a pace described as unprecedented in the region.
In line with its social mission, Safaricom has launched its Foundation in Ethiopia, supporting local communities even before turning a profit.
Group Performance Highlights
| Metric | 30-Sep-25 (KShs Mn) | 30-Sep-24 (KShs Mn) | Variance (KShs Mn) | % Change |
|---|---|---|---|---|
| Service Revenue | 199,865.2 | 179,923.8 | 19,941.4 | +11.1% |
| Total Revenue | 204,708.2 | 189,421.9 | 15,286.3 | +8.1% |
| EBITDA | 101,288.0 | 75,070.7 | 26,217.3 | +35.0% |
| Operating Profit (EBIT) | 65,213.5 | 42,204.5 | 23,009.0 | +54.5% |
| Profit After Tax | 29,189.9 | 10,012.1 | 19,177.8 | +191.5% |
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