The total dividend payout for the year comes to KES 1.20 per share following an interim dividend of KES 0.55 per share that was paid on or about 31 March 2025.
Safaricom, Kenya’s leading telecommunications company, has announced a massive KES 48.08 billion ($370 million) dividend payout to its shareholders, marking a robust show of investor confidence and financial strength. This payout includes a final dividend of KES 0.65 per share, on top of an interim dividend of KES 0.55 already disbursed, bringing the total dividend for the year to KES 1.20 per share. The company’s board approved this final dividend during a meeting held on July 25, 2025.
The announcement comes on the heels of a strong rally in Safaricom’s share price, which has surged by over 50% in 2025. This rebound follows a period of depressed performance in 2022 and 2023, largely attributed to economic challenges and investor concerns over the company’s expansion into Ethiopia. However, renewed optimism driven by the company’s strategic execution and growth in the Ethiopian market has led to strong investor sentiment and a sharp increase in stock value.
Safaricom’s dividend payout highlights its commitment to shareholder returns despite the heavy investments made in its Ethiopian operations. The company’s foray into Ethiopia, a market with over 120 million people, has started yielding results. The Ethiopian subsidiary, Safaricom Telecommunications Ethiopia PLC, has reported increasing subscriber numbers and improved financial performance. This progress has helped mitigate earlier skepticism around the profitability and risks of entering the Ethiopian market.
Moreover, Safaricom continues to dominate the Kenyan telecom landscape, with its mobile money service, M-Pesa, remaining a key revenue driver. The company has also expanded its digital and financial services, including lending and insurance products, further enhancing customer engagement and revenue streams.
The dividend payout and share price surge are also seen as a signal of Safaricom’s resilience and adaptability in a rapidly evolving telecom sector. Analysts note that the company’s strong cash flows and prudent cost management have enabled it to maintain generous shareholder returns while funding growth initiatives.
With the Ethiopian market gaining momentum and the Kenyan operations remaining solid, Safaricom is well-positioned for long-term growth. Investors and analysts alike view the recent developments as a positive indicator of the company’s strategic direction and financial health.
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