Piece by: VICTOR AMADALA

09 May 2024

• It becomes the first company in East Africa to hit past a billion-dollar mark in earnings.

Safaricom's operating profit for the year ended March 2023 rose by 20% to Sh140 billion.

The posting makes Safaricom the first company in East Africa to hit past a billion-dollar mark in earnings.

Safaricom CEO Peter Ndegwa announced that M-Pesa has officially surpassed the 40 percent milestone in contributing to Safaricom's service revenue.

For the fiscal year ending on March 31, 2024, Safaricom reported a 23 percent decrease in net earnings, totaling Sh42.6 billion compared to Sh52.4 billion the previous year.

The decline was attributed to a challenging operating environment marked by forex volatility, leading to the shilling's depreciation against major international currencies.

Safaricom's gross earnings also decreased from Sh88 billion to Sh84 billion year-on-year.

M-Pesa emerged as the leading contributor to the company's service revenue, exceeding the 40 percent mark.

The mobile money segment's total earnings surged to Sh139.9 billion, constituting 42 percent of Safaricom's overall service revenue, marking a significant increase from the previous year's 19.36 percent.