Safaricom’s latest results show how much a growing regional operation can change the performance of an established African business. Announced on 5 November, the figures cover the six months ended 30 September 2026. They combine continued growth in Kenya with a substantial reduction in Ethiopia’s losses, rather than a declaration that the Ethiopian business has already become profitable.

In its results announcement published by Vodacom, Safaricom reported group service revenue of KSh226.1 billion, up 13.1%. Group earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 27.5% to KSh129.2 billion. M-PESA revenue reached KSh100.1 billion, crossing the KSh100 billion mark for a half-year period.

Those figures put payments alongside connectivity at the centre of the story. They also make it important to read the different earnings measures separately. Revenue describes what the business generates from services; EBITDA removes several substantial categories of cost. A narrowing EBITDA loss is evidence of improvement, but it cannot by itself establish that all the costs of a network have been covered.

### Ethiopia’s progress needs a precise label

The company announcement puts Ethiopia’s service revenue at KSh10.6 billion, up 71.6%, with 15.4 million customers active over three months. Its EBITDA loss narrowed 96.5% to KSh434.4 million. Management continues to target EBITDA break-even by the end of the financial year: that is a forward-looking company objective.

Reuters’ independent reporting of the briefing identifies lower Ethiopian start-up losses and a solid Kenyan performance as the drivers of group operating earnings. Group earnings before interest and taxes, or EBIT, rose about 40% to KSh91.1 billion. Reuters also places the Ethiopian expansion’s start in 2022, when the country began opening telecommunications to foreign competition.

The active-customer figure also needs care. A count covering three months describes participation over that interval; it is not a measure of how much each customer spends or how regularly they use a service. Assessing the commercial strength of that customer base requires attention to usage and earnings as well as its size.

The difference between EBITDA and EBIT is particularly useful here. Kenyan technology publication Techweez reports Ethiopia’s operating loss at KSh11.4 billion, even as the EBITDA loss approaches zero. Depreciation and amortisation sit between those measures. Network investment can therefore continue to weigh on operating earnings after day-to-day trading has moved much closer to balance.

For readers comparing headlines, this is the question to ask: which costs have been included? Treating every reference to “break-even” as interchangeable would obscure the stage that the Ethiopian business has actually reached.

### Kenya remains the larger engine

Business Daily’s reporting places Kenyan service revenue at about KSh216 billion, up 11.3%, and identifies M-PESA and mobile data as important contributors. Ethiopia’s faster percentage growth starts from a much smaller revenue base. The regional expansion is becoming more significant without displacing Kenya’s central role.

The results invite two separate assessments. Shareholders can examine whether the cost of expansion is becoming easier for the group to absorb. Customers and small businesses need to judge whether the services offered are reliable, affordable and useful. Better company earnings cannot answer the second question on their behalf.

For a merchant, the practical test is whether customers can pay consistently and whether transaction costs fit the value of a sale. For a freelance editor or distributor, connectivity matters when work must be delivered and invoices collected. These are examples of how telecom services enter business activity, rather than claims that the latest results establish an improvement for every user.

### What deserves attention next

RIM’s analysis is that the next reporting periods should be read for the durability of Ethiopia’s improvement, the relationship between usage and revenue, and the costs still separating EBITDA from operating profit. A single strong half-year cannot settle those questions.

That scrutiny connects with our reporting on BII’s Kenya strategy and the role of domestic capital. Both stories concern the conditions under which investment becomes a sustainable business. Safaricom’s results provide a measurable advance; the promised break-even milestone still needs to be delivered and assessed on its stated terms.

*Illustration: AI-generated conceptual artwork of an unbranded phone, payment tokens and telecommunications towers; it does not depict Safaricom premises or an actual results event.*

Why this matters

African businesses depend on the networks and payment systems through which customers, suppliers and audiences connect. Safaricom’s results offer evidence that expansion in Ethiopia is becoming less costly for the group, while Kenya continues to generate most service revenue. Keeping EBITDA, operating earnings and final profit distinct helps readers assess that progress without turning a company target into an accomplished result. The practical value for users will depend on service quality and cost.

Sources

Topics: Safaricom · Kenya · Ethiopia · M-PESA · Telecommunications · African business

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