Safaricom Boosts Interim Dividend, Sparks Investor Excitement for FY 2026

**Safaricom Boosts Interim Dividend, Sparks Investor Excitement for FY 2026**

**Introduction**
Kenya’s leading telecommunications operator, Safaricom PLC, announced on Wednesday a raise in its interim dividend for the six‑month period ended September 2024. The board approved a payout of KES 0.80 per share, up from KES 0.65 in the same period last year—a 23 % increase that sent the Nairobi Securities Exchange buzzing. Analysts say the move reflects stronger cash generation and confidence in the company’s ability to sustain growth amid a competitive market.

**Key Developments**
The dividend hike follows Safaricom’s release of solid half‑year results: revenue climbed 9 % year‑on‑year to KES 152 billion, driven by a surge in mobile data usage and a steady rise in M‑Pesa transaction volumes. Net profit rose 12 % to KES 28 billion, bolstered by cost‑saving initiatives and a lower effective tax rate. The board cited “robust operating performance and a healthy balance sheet” as the rationale for the higher payout, noting that the interim dividend represents roughly 40 % of interim earnings—a level the company aims to maintain through FY 2026.

**Industry Analysis**
Safaricom’s decision comes at a time when Kenya’s telecom sector is navigating price pressures from new entrants and the rollout of 5G services by rivals. Despite these challenges, Safaricom retains a market share above 65 % in mobile subscriptions and continues to lead in average revenue per user (ARPU). Industry observers highlight that