Safaricom Reports 4.8% Rise in H1’2023 Revenue to Kshs 153.4 bn

Safaricom Customer Service Center Kenyatta Avenue

Safaricom, Kenya’s biggest telecoms operator, on Friday, reported a 4.8% rise in revenue and lifted its capital expenditure plan for the half-year that ended September 30, 2022.

The telco generated revenue of Ksh 153,430.3 million compared to Ksh 146,368.4 million a year ago.

The increase in revenue was majorly driven by a 4.6% increase in service revenue to Kshs 144.8 bn from Kshs 138.4 billion recorded in H1’2022, with M-PESA revenue and mobile data revenue increasing by 8.8% and 11.3% to Kshs 56.9 billion and Kshs 26.3 billion in H1’2023 from Kshs 52.3 billion and Kshs 23.6 billion recorded in H1’2022, respectively,

Its Net Income was Ksh 33,472.2 million compared to Ksh 37,172.2 million a year ago.

However, its net profit for the period came to KSh33.5 billion because of macroeconomic effects and a reduction in mobile termination rates. Its total revenue rose by 4.6% to Ksh153.4 billion in the period, helped by an 8.7% increase in M- PESA revenue to Ksh56.9 billion and an 11.3% jump in data earnings to KSh26.3 billion.

However, voice revenue fell by 3.8% to KSh39.9 billion, while total costs rose by a third to KSh31 billion, mainly on the back of the firm’s investment in its Ethiopia subsidiary.

“Given the impact of the MTR rates from 99 cents to 58 cents, a slowdown in business operations due to the election period, increase in excise duty on sim cards and mobile phones and a failed rain season leading to more economic hardship for the country Safaricom has done well to deliver solid revenue growth and a net income that is within the expected range,” said Safaricom chief executive officer Peter Ndegwa on Friday.


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