Safaricom Rakes Sh50bn profit via M-Pesa sector

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Safaricom’s mobile money platform made a profit of Sh50 billion before tax in the year ended March,2022 injecting nearly half of the company’s total earnings and confirming M-Pesa’s place as the most profitable venture on its channels.

The performance statement shows that while M-Pesa business contributed 49 percent of the telco’s profit before tax of Sh102.2 billion, its revenue of Sh107.7 billion accounted for 36 percent of the company’s total revenue of Sh298.07 billion.

This indicates that the mobile money unit has superior profitability compared to other business lines such as voice and data.

In the previous financial year, the gross profit from mobile money stood at Sh39 billion, accounting for 41.7 percent of the group’s total profit before tax.

The growing profitability has been helped by the increased adoption of mobile payments in the past two years, after the transaction limit was increased to Sh150,000 and the mobile money wallet amount raised to Sh300,000 from March 2020.

The Communication giant, in its latest annual report outlined the share of profits attributable to the mobile money business for the first time, having previously just reported the contribution to revenues.

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