Safaricom Plc
SCOM · NSE · Telecommunication
KSh 34.90
+1.16%
AI Score
Augur AI Analysis · FY2026
Last updated 1 October 2026
00
Summary
3.7 / 5
3 of 4 dimensions score above 3.5
Safaricom's FY2026 improvement is backed by cash generation, but investment and distributions still absorb much of it.
Revenue grew 10.0%, operating margin reached 34.2% and free cash flow was KES 78.08bn against KES 60.56bn dividends. Its disclosed payments network supports franchise strength, while Ethiopia remains an execution exposure. This local report-based score covers four operating axes; valuation is unassessed using the stale 24 July 2026 quote.
- Fin. Health
- 3.4
- 3.8 med
- Growth
- 3.5
- 3.0 med
- Profitability
- 4.0
- 3.6 med
- Bus. Quality
- 3.9
- 3.5 med
Key figures · FY2026
- Revenue
- KSh 427.6B
- Net income
- KSh 95.6B
- Diluted EPS
- KSh 2.40
- Free cash flow
- KSh 78.1B
01
Financial Health
3.4 / 5
Safaricom generated KES 169.91bn operating cash in FY2026, covering KES 91.82bn cash investment and KES 60.56bn dividends with KES 17.53bn left before other investing and financing flows. That is a substantial funding source, although balance-sheet cash declined to KES 26.96bn. Current liabilities exceed current assets, but a prepaid telecom business should not be scored solely on its 0.59 current ratio. Complete debt was not established in the import, so this assessment makes no net-debt claim.
Key evidence
- Current ratio
- 0.6×
- Total debtFY2026
- KSh 109.3B
- Total equityFY2026
- KSh 230.9B
What supports the score
- Operating cash was KES 169.91bn and cash capex KES 91.82bn, producing KES 78.08bn free cash flow. PDF page 158.
- Dividends of KES 60.56bn left KES 17.53bn after cash capex and distributions, before other cash movements. PDF page 158.
- Balance-sheet cash fell from KES 30.00bn to KES 26.96bn; current assets were KES 79.95bn against KES 135.44bn current liabilities.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Total Debt | KSh 109,255 | KSh 107,430 | — |
| Total Equity | KSh 230,921 | KSh 224,021 | KSh 226,349 |
| Current Ratio | 0.6× | 0.5× | 0.5× |
Money figures in KES millions; per-share and ratio rows in their own units.
02
Growth
3.5 / 5
Revenue increased 10.0% in FY2026 to KES 427.56bn, slightly below the 11.2% FY2023-FY2026 CAGR. That lower annual pace sets the existing growth anchor. Operating profit grew 40.6% as operating expenses declined despite rising sales, while parent profit increased 37.0%. The financial evidence supports strong reported growth, not an assumption that profit can keep outgrowing revenue. Group figures also combine operations with different maturity and risk; they are not a Kenya-only or constant-currency growth measure.
Key evidence
- Revenue growthyear over year
- +10.0%
- Net income growthyear over year
- +37.0%
- RevenueFY2026
- KSh 427.6B
- Diluted EPSFY2026
- KSh 2.40
What supports the score
- FY2026 revenue of KES 427.56bn compares with KES 388.69bn in FY2025, a 10.0% increase. PDF page 152.
- FY2023 revenue was KES 310.90bn, giving 11.2% annual growth over three years. Retained validated annual series.
- Operating profit increased from KES 104.05bn to KES 146.32bn; parent profit rose from KES 69.80bn to KES 95.61bn.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue | KSh 427,559 | KSh 388,689 | KSh 349,447 |
| Revenue YoY | 10.0% | 11.2% | — |
| Net Income | KSh 95,609 | KSh 69,799 | KSh 62,992 |
| Net Income YoY | 37.0% | 10.8% | — |
Money figures in KES millions; per-share and ratio rows in their own units.
03
Profitability
4.0 / 5
Operating margin rose from 26.8% to 34.2%, above both FY2024 and FY2023, while operating expenses fell 3.7%. Parent-profit ROE reached 47.5%, but that should be read alongside 18.5% ROA and the attribution structure. Parent profit of KES 95.61bn exceeds total group profit of KES 73.68bn because non-controlling interests absorb losses. Group free cash flow of KES 78.08bn is therefore compared with group profit, not silently treated as cash solely belonging to parent shareholders.
Key evidence
- Operating margin
- 34.2%
- Net margin
- 22.4%
- Return on equity
- 47.5%
- Return on assets
- 18.5%
- Free cash flowFY2026
- KSh 78.1B
What supports the score
- Operating margin was 34.2% in FY2026 versus 26.8% in FY2025 and 23.0% in FY2024. Validated ratios.
- Group profit was KES 73.68bn; KES 21.93bn losses attributable to non-controlling interests lifted parent profit to KES 95.61bn.
- Group free cash flow was KES 78.08bn, about 1.06 times group profit; this is a single-year conversion check.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Operating Margin | 34.2% | 26.8% | 23.0% |
| Net Margin | 22.4% | 18.0% | 18.0% |
| ROE | 47.5% | 39.3% | 27.8% |
| ROA | 18.5% | 13.6% | 9.8% |
04
Valuation
Not assessed
no score recorded
Strong operating results are not the same as an inexpensive share price. The stored quote is dated 24 July 2026, and this review has not refreshed prices, reconstructed a current market capitalisation or filled the incomplete debt input to manufacture enterprise-value ratios. Valuation remains unassessed and contributes no number to the composite. The resulting score describes four operating dimensions as reviewed on 1 October 2026, not a current price target or expected return.
What supports the score
- The retained quote is dated 24 July 2026, whereas this local review was prepared on 1 October 2026.
- FY2026 parent profit is KES 95.61bn, but verified earnings alone do not establish a current price-based valuation.
- No price, market-capitalisation or complete-debt estimate was written; valuation is explicitly excluded rather than assigned a neutral score.
05
Business Quality
3.9 / 5
Safaricom's report describes a payments and connectivity network embedded in daily transactions, not just a large revenue base. The disclosed 3.1 million businesses accepting M-PESA payments provide a concrete basis for assessing network utility and distribution reach. The report also describes a renewed 25-year Kenyan operating licence. Those support durability, but do not eliminate regulatory or execution risk. Ethiopia's disclosed expansion adds an operating challenge; company-reported reach and plans are not independent proof of lasting market dominance.
How this axis is scored
What supports the score
- Safaricom reports 3.1 million businesses accepting M-PESA payments in FY2026. Annual report, PDF page 55; company disclosure.
- The FY2026 report states that Kenya's unified operating licence was renewed for 25 years. PDF page 55; issuer-reported status.
- Ethiopia had 13.6 million customers and 3,504 sites according to the FY2026 report. PDF page 55; execution remains distinct from Kenya.
06
Risks
liquidity
Cash capex and dividends consumed KES 152.38bn of FY2026 operating cash generation.
structural
The disclosed Ethiopian expansion carries execution exposure distinct from the established Kenyan operation.
margin
Parent earnings exceed group profit because of non-controlling losses; attribution needs careful interpretation.
07
Catalysts
cash flow
Sustaining cash generation above investment and dividends would preserve internal funding capacity.
structural
Deepening usage across the disclosed M-PESA merchant network would reinforce its transaction utility.
margin
Maintaining improved operating conversion would corroborate FY2026's stronger earnings, without assuming further margin expansion.
08
Sources
Every figure in this report is drawn from Safaricom Plc's reported annual financial statements as ingested by Augur, from the ratio snapshots derived from them, and — for Business Quality — from dated news sources cited in that chapter. Each chapter's own “View source data” table shows the periods behind it.
Method and limitations
This analysis is generated by an AI system, not by a human analyst. Financial Health, Growth, Profitability and Valuation are scored only from reported historical financial data — company filings and the figures derived from them. Business Quality is the exception: it is informed by a news-based evidence layer of dated, cited reporting from established news organisations, and is left at a neutral score when too few sources cover the company to support a judgement. Nothing here is a forecast: there are no price targets or earnings projections. Figures are drawn from reported filings and may contain errors, omissions or misinterpretations. Augur's operators may hold positions in covered securities; the analysis is produced by an automated methodology and is not influenced by any such holdings. This is not investment advice.