Safaricom Posts Strong Q3 Profits Driven by M-Pesa and Fibre Expansion

Safaricom PLC reported a 9.3% year-on-year rise in pre-tax profit for the third quarter of FY2024, reaching Ksh28.7 billion, powered by robust growth in M-Pesa transactions and fibre broadband subscriptions. CEO Peter Ndegwa attributed the performance to strategic investments in digital financial services and enterprise solutions. M-Pesa transaction value surged by 22%, crossing Ksh7.4 trillion annually, while fibre customers grew by 38% to 1.2 million. The telco also expanded its 5G network to 15 urban centers. Despite regulatory pressures—including proposed caps on mobile lending fees—Safaricom maintained its dividend payout. The company is accelerating its Safaricom Business segment to serve SMEs with cloud and cybersecurity tools. Analysts noted challenges ahead from rising competition (Airtel’s bundled offers) and currency volatility affecting equipment imports. Still, Safaricom remains East Africa’s most profitable company, contributing over 5% to Kenya’s GDP.