Safaricom FY2025: A Cash Machine Still in Beast Mode

When you scan through Safaricom’s FY2025 Statement of Cash Flows, one thing jumps off the page — this company is a cash-generating powerhouse. Forget the fancy tech talk; Safaricom’s business model still runs on one unbeatable engine — massive, steady cash flow.

In the year ended March 2025, the telco pulled in a jaw-dropping KSh 183.65 billion in cash from operations, up from KSh 149.47 billion the previous year. That’s not just revenue growth — that’s real money in the bank from day-to-day business.

After settling taxes worth KSh 48.63 billion (yes, they’re still one of Kenya’s biggest taxpayers) and collecting KSh 2.67 billion in interest, the company walked away with KSh 137.69 billion in clean operating cash flow — the kind of liquidity most firms only dream about.

And here’s where it gets interesting 👇

Even with heavy investments — KSh 75.5 billion poured into new infrastructure, data networks, and the Ethiopia expansion — and KSh 53.2 billion handed out to shareholders as dividends, Safaricom still ended the year richer than it started. Cash reserves jumped from KSh 22.9 billion to KSh 30 billion.

That’s the mark of a company that’s not just surviving — it’s scaling, spending, rewarding, and still stacking cash.

📈 The Dividend Story — Funded by Real Cash, Not Borrowing

Many firms pay dividends out of borrowed money or asset sales. Not Safaricom. Their KSh 1.20 per share payout (KSh 48.08 billion total) is fully covered by internal cash flows. Even with Ethiopia’s currency shocks, hyperinflation adjustments, and a KSh 91 billion capex bill, the dividend still stands — stable and steady.

It’s not just financial discipline; it’s investor confidence. Safaricom knows shareholders expect consistency, and it delivers — year after year — backed by real liquidity, not accounting tricks.

The dividend yield at the FY2025 closing price of KSh 18.30 stands at roughly 6.6%, an attractive return for income-focused investors. What’s more impressive is that this dividend is covered nearly four times by operating cash flow — a level of safety rare in the regional market.

Safaricom’s free cash flow of KSh 89.9 billion after investment spending shows that even after growth-related outflows, it still has ample room to reward shareholders and reduce debt. With net debt at KSh 64.5 billion (0.31× EBITDA), the balance sheet remains rock solid.

🚀 Why It Matters for Long-Term Investors

For anyone building long-term wealth, this is gold. Safaricom’s secret weapon isn’t just M-PESA or data — it’s cash flow visibility. You can literally see the company’s growth translating into cash.

They’re investing aggressively in Ethiopia, scaling 5G and fintech, and still throwing off billions in free cash. That’s how wealth compounds — when a company can expand and pay you at the same time.

🌱 Safaricom as a Dual Engine — Growth + Dividend Stock

Safaricom is the rare blend of a growth stock and a dividend stock. Its cash engine funds expansion without sacrificing shareholder returns.

• Growth drivers: M-PESA revenues surged 15.2% YoY to KSh 161.1 billion, while data and fixed broadband continued rising sharply. Ethiopia, though still early, is on track to break even within the next 18–24 months, positioning the company for a regional growth leap.
• TechCo transformation: Safaricom’s pivot into AI, digital content, and fintech positions it as an integrated technology company, not just a telco. That’s where margin expansion and future valuation upside lie.
• Resilient core: Kenya remains a strong profit anchor, with double-digit EBITDA margins and high customer retention even in a competitive environment.
• Ethiopia opportunity: As mobile penetration rises and M-PESA launches at scale, Safaricom Ethiopia could add millions of customers and new revenue layers to the group.

This mix of stable cash flow and scalable new revenue streams makes Safaricom ideal for investors seeking both dividend income today and capital growth tomorrow.

💹 The Wealth-Building Outlook

Safaricom’s consistent dividend policy, backed by strong cash conversion, ensures steady passive income for shareholders. But its longer-term wealth story is anchored in compounding — using cash from mature operations (Kenya) to fund high-growth ventures (Ethiopia, fintech, digital ecosystems).

If current trends persist — 10–12% annual operating cash flow growth, moderate dividend increases, and long-term share price appreciation — investors could see total returns north of 15% per annum over the medium term.

The key? Safaricom doesn’t rely on financial engineering. It grows the old-fashioned way — by earning more than it spends, paying shareholders what it can afford, and reinvesting the rest wisely.

🧭 Bottom Line

Safaricom FY2025 is the perfect case study in financial discipline meeting expansion ambition.

It’s paying strong dividends, cutting debt, funding 5G and Ethiopia growth, and still stacking billions in free cash. That balance — income + growth + resilience — is what turns an ordinary telecom stock into a wealth-building powerhouse.

For investors who value both steady returns and future upside, Safaricom remains in beast mode — and it’s not slowing down anytime soon.