Safaricom has unveiled a total dividend of KSh2.00 per share for the 2026 financial year, amounting to a historic KSh80.13 billion payout, the largest corporate dividend declaration ever recorded in Kenya by absolute value.
The announcement marks the end of a three-year dividend freeze and surpasses the telco’s previous record payout achieved in FY2019.
The board has proposed a final dividend of KSh1.15 per ordinary share, bringing the full-year shareholder payout to KSh2.00 after an interim dividend of KSh0.85 paid in March 2026.
If approved by shareholders during the Annual General Meeting scheduled for July 31, 2026, the final dividend will be paid on or around September 4, 2026, to shareholders registered by the close of business on August 4, 2026.
Safaricom had maintained its dividend at KSh1.20 per share across FY2023, FY2024 and FY2025 as it absorbed startup losses from its Ethiopia expansion while navigating a period of heavy capital expenditure.
The FY2026 payout therefore represents a 66.7% increase, the sharpest year-on-year dividend jump since the company listed on the Nairobi Securities Exchange. The move also restores the payout ratio to 83.7%, up from 69% in FY2025.
The strong dividend is backed by equally robust earnings growth.
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Safaricom’s attributable profit rose 37% to KSh95.61 billion, the highest profit ever reported by a company in East and Central Africa. Net cash generated from operating activities climbed to KSh169.91 billion, giving the company a dividend coverage ratio of 2.12 times.
To place the payout into perspective, Safaricom’s KSh80.13 billion dividend is larger than the entire FY2025 profit after tax reported by Equity Group Holdings, which posted KSh75.5 billion, making it the region’s second most profitable company.
The payout also exceeds the FY2025 profit after tax of KCB Group by KSh11.78 billion after the bank recorded KSh68.35 billion in earnings.
Among Kenyan listed firms, the next largest FY2025 dividend payouts came from KCB Group at KSh22.5 billion and Equity Group Holdings at KSh21.7 billion, both significantly lower than Safaricom’s FY2026 distribution.
Since its 2008 listing price of KSh5.00 per share, Safaricom has cumulatively declared KSh694.29 billion in dividends, equivalent to KSh17.33 per share.
Based on the May 7 closing price of KSh32.10, the stock has also delivered a capital gain of KSh27.10 per share, translating to a 542% appreciation.
Combined, investors who bought shares during the IPO have realised KSh44.43 per share in both dividends and capital gains against the original KSh5.00 purchase price, representing a total return of 889%.
In practical terms, a KSh100,000 investment made during the IPO would today be worth approximately KSh889,000 before factoring in reinvested dividends. Not bad for a company many Kenyans initially bought shares in because the advert jingles were catchy and everybody’s auntie said, “Hii ni sure bet.”
Safaricom Chairman Adil Khawaja said the board remains committed to maintaining a “resilient and progressive dividend” policy, supported by the company’s recently renewed 25-year operating licence.
With Ethiopia’s operations expected to approach EBITDA breakeven in FY2027 and Kenya’s business continuing to generate strong cash flows, Safaricom appears poised to maintain its upward earnings trajectory.
