Safaricom Kenya’s Market Share Hits 65.9%, Leaving Airtel at 29%

July 12, 2024

4 min read

Author: Akim Benamara

Safaricom, a leading telecommunications giant in Africa, continues to set benchmarks in innovation, customer satisfaction, and market dominance. The 2024 Annual Report reveals significant strides in expanding its footprint, particularly in Ethiopia, enhancing infrastructure, and maintaining an unwavering focus on customer value. These efforts not only bolster Safaricom’s market position but also reaffirm its commitment to transforming lives through technology.

Technology has become an integral part of our daily lives, driving innovation and progress across various sectors of the economy. Our transition from a Telco to a TechCo is underpinned by our firm commitment to bridge digital and financial divides. While demonstrating our ability to utilize technology and provide relevant solutions that solve societal issues, we have cemented our strategic move to become a technology company.

It is pleasing to note that our company ecosystem remains geared for growth. We have put in place measures to facilitate this by driving efficiency and cost reduction through our technology, infrastructure, and culture, as well as through our commitment to green principles. Indeed, solar energy is already driving a full 24% of our sites.
Peter Ndegwa, CEO, Safaricom

Investment in Infrastructure: Building a Robust Network

Safaricom’s extensive investment in infrastructure has been pivotal to its sustained growth and service quality. The company has significantly expanded its network, particularly with the rollout of 5G and fiber-optic technology. By the end of FY2024, Safaricom had deployed over 803 active 5G sites across 43 out of the 47 Kenyan counties, enhancing connectivity and enabling super-fast internet services. Additionally, the company has laid down 17,000 kilometers of fiber-optic cable, a 21.4% increase from the previous year, connecting more homes and businesses to high-speed internet.

In the competitive landscape of Kenyan telecommunications, Safaricom continues to hold a dominant position. With a customer market share of 65.9%, Safaricom leads significantly over its nearest competitor, Airtel, which holds about 29%. This leadership is evident in various service metrics, including voice and SMS services. While Airtel has made efforts to increase its market presence, Safaricom’s robust infrastructure, superior customer service, and innovative offerings keep it ahead. The company’s proactive approach to network expansion and service enhancement ensures it remains the preferred choice for millions of Kenyans.

Mobile Money Insights: Leading the Digital Financial Revolution

Safaricom’s M-PESA remains a cornerstone of its business, revolutionizing mobile money services in Kenya and beyond. In FY2024, M-PESA revenue grew by 19.4% to KShs 139.9 billion, reflecting its critical role in the financial ecosystem. The service boasts 32.41 million active customers, making it one of the largest mobile money platforms globally. Innovations such as M-PESA Go, tailored for teenagers, and the M-PESA Global Pay Virtual Visa Card, facilitating international transactions, highlight Safaricom’s commitment to broadening financial inclusion. The platform’s integration with banking services and support for small businesses through initiatives like Lipa Na M-PESA further solidify its market leadership.

Market Performance: Strong Financial Health

Safaricom’s market performance in FY2024 underscores its resilience and strategic foresight. The company reported a service revenue growth of 13.4% year-on-year, reaching KShs 335.4 billion. Despite a competitive market and economic challenges, Safaricom’s proactive measures and customer-centric approach ensured continued growth. The company’s strategic initiatives, such as pricing adjustments and personalized service offerings, helped retain and expand its customer base. Additionally, Safaricom’s contribution to Kenya’s GDP and its significant market capitalization of KShs 0.71 trillion underline its crucial role in the national economy.

Expansion in Ethiopia: Unlocking New Opportunities

Safaricom’s foray into Ethiopia represents a significant milestone in its growth strategy. Since launching operations, Safaricom Ethiopia has rapidly scaled its network, registering 4.35 million customers and achieving notable milestones in mobile money and data services. The company’s strategic investment in ICT infrastructure and tailored services for the Ethiopian market are driving significant growth. Safaricom’s focus on expanding its 4G and 5G networks and introducing innovative financial services like M-PESA is set to transform the Ethiopian telecommunications landscape. This expansion not only diversifies Safaricom’s revenue streams but also positions it as a key player in one of Africa’s largest and most promising markets.

Safaricom’s 2024 report highlights a year of strategic advancements, robust financial performance, and unwavering commitment to customer satisfaction and social impact. As the company continues to innovate and expand, it remains poised to lead the telecommunications industry in Africa, transforming lives and creating value for its customers and stakeholders.