Safaricom’s Net Profit Drops 22.2% to Sh52.5 Billion

Due to strong inflationary pressure and a decline in voice profits, Safaricom’s net profit fell by Sh15 billion in the full year ending March 31, 2023.

The telco’s net profit decreased from Sh67.5 billion during the same time last year to Sh52.5 billion this year.

It came on the back of increasing inflationary pressure that has impacted most households as well as the 2022 general elections.

Voice revenue, which was down 2.6 percent from Sh81.1 billion, underperformed.

“We have delivered a solid set of results despite the tough operating environment occasioned by slowdown in business activity in an election year in Kenya, tough macro environment as well as change in mobile termination rates which impacted our voice revenues significantly,” Safaricom CEO Peter Ndegwa said.

While M-Pesa revenue increased by 8.8% to Sh117.2 billion, mobile data revenue increased by 11.40% to Sh54 billion.

“The business is stable and regained a strong positive momentum in the second half of the year,” Ndegwa added.

“Looking into the future, we passionately believe that our business is well-positioned to support our customers and provide technology solutions as we transition into a purpose-led technology organization in line with our 5 YR strategy.”