How Safaricom generated Ksh242B for the Kenyan govt
By Mustafa Juma, July 11, 2026The Government of Kenya has received an estimated Ksh242.3 billion in value from its investment in Safaricom over the past 18 years.
The figure, disclosed in Safaricom’s FY2026 Annual Report, captures the cumulative value generated for the government through dividends, taxes and other economic contributions since the State became a shareholder in the company.
It highlights the long-term returns the Exchequer has earned from one of its most successful strategic investments.
A strategic investment paying off
Safaricom has grown from a mobile network operator into Kenya’s largest technology and financial services company, with the government remaining one of its major shareholders alongside Vodafone Group and other investors.
However, Vodacom Group Limited has completed its acquisition of an additional 20 per cent effective stake in Safaricom PLC, lifting its total ownership to about 55 per cent. The deal gives Vodacom majority control of Kenya’s largest telecom and mobile money operator after months of legal, regulatory and parliamentary scrutiny.
Over nearly two decades, the company has consistently declared dividends while also contributing billions of shillings annually in corporate taxes, value-added tax, excise duty, licence fees and other statutory payments.
The FY2026 report notes that the cumulative value to the government has now reached Ksh242.3 billion, reflecting Safaricom’s sustained profitability and its importance to Kenya’s fiscal position.
Record profits boost government returns
The latest contribution comes on the back of another record-breaking financial year.
Safaricom’s Kenya operations reported a service revenue of Ksh400.8 billion, up 10 per cent, a net income of Ksh119.1 billion, representing a 24.7 per cent increase from the previous financial year, EBITDA of Ksh233.9 billion, up 13.7 per cent, and operating free cash flow of Ksh173.6 billion, an increase of 16.7 per cent.
The strong earnings are expected to support another healthy dividend payout, further strengthening returns for shareholders, including the Government of Kenya.
M-PESA driving the numbers
A major driver of Safaricom’s financial success continues to be M-PESA, which has evolved into one of Africa’s largest mobile financial services platforms.
During the financial year ended March 2026, M-PESA processed Ksh41.68 trillion worth of transactions and generated Ksh182.7 billion in revenue, a 13.4 per cent increase from the previous year.
The platform now facilitates millions of daily transactions ranging from person-to-person transfers and merchant payments to government collections, utility bills, salaries, international remittances and digital financial services.
Its rapid growth has transformed Safaricom from a traditional telecommunications company into a fintech and technology powerhouse.
Supporting the economy beyond taxes
Beyond direct payments to the government, Safaricom says its impact on the broader economy continues to expand.
According to the annual report, the company now contributes approximately 5 per cent of Kenya’s Gross Domestic Product (GDP) and supports more than 1.3 million jobs through its employees, suppliers, dealers, M-PESA agents, merchants and wider business ecosystem.
Its digital platforms have become integral to commerce, allowing businesses of all sizes to receive payments electronically while improving financial inclusion across the country.
The company also continues to invest in network expansion, digital infrastructure, enterprise technology, cloud services, healthcare innovations and Internet of Things (IoT) solutions.
As one of Kenya’s most profitable listed companies, Safaricom has consistently ranked among the country’s largest taxpayers and dividend-paying firms.
Successive governments have relied on revenue generated by the company to support public spending, while its digital payment systems have become central to the delivery of government services and revenue collection.