In the third quarter, Safaricom’s market share continued to fall as Airtel gained traction in Kenya.
The Communications Authority of Kenya (CA) released its most recent Sector Statistics report, and it shows that Safaricom’s subscriber market share decreased for the third straight quarter ending in September. According to the report, Safaricom’s broadband subscriptions dropped by 0.9% to 61.9%, while its SIM subscriptions fell by 0.4% to 65.7% market share.
The CA report said that Airtel Networks gained market share in both mobile (SIM) and broadband subscriptions, while Safaricom PLC and Telkom Kenya LTD lost market share in both categories.
According to the report, there were 67.1 million mobile subscriptions in Kenya as of September. Safaricom held the largest share of subscribers, with 44.1 million, of which 43 million were prepaid.
Read also: Safaricom announces increased net income in Kenya
Decline in Safaricom’s market share
Safaricom lost 200,000 subscribers, but its market share increased to 65.7% from 66.1%. Telkom Kenya also experienced a decline, ending with 2.1 million subscribers and a 3.8% to 3.1% market share. Airtel Networks, on the other hand, gained ground, growing its market share of subscribers from 27.2% to 28.2% and bringing on 800,000 more users to reach 18.9 million.
Regarding this further, Q1 Sector Statistics for the fiscal year 2023/2024 show that 38.1 million Kenyans have mobile money subscriptions, representing a 75.2% penetration rate. This represents a 0.1% increase in the penetration rate from the previous quarter and a 338,209 increase in the number of mobile money agents.
A report claims that M-PESA from Safaricom, which now holds a 97% market share in mobile money, continues to hold a leading position. With a 2.9% market share, Airtel Money comes in second, and T-Kash from Telkom trails far behind with a 0.1% share.
Safaricom users can obtain 4G smartphones with 12 months payment plan
Safaricom’s profit in Kenya
The company’s losses in Ethiopia, where it began operations last year, have largely been offset by Safaricom’s success in Kenya. The Ethiopian project intends to break even in 2026, but it is anticipated to experience its highest investment losses in this fiscal year.
Even though Safaricom obtained Ethiopia’s first private telecom licence in 2021, the company still reported a 25 billion shilling loss there.
The remarkable 16.5% growth in revenue from its M-Pesa financial services platform and the 12.5% growth in revenue from its mobile internet services demonstrate Safaricom’s positive performance in Kenya. These numbers demonstrate the company’s tenacity in the face of difficult economic conditions in its home market.
Notable is Safaricom’s dedication to sustainability. The company has been able to keep costs down by powering its gearbox sites with renewable energy rather than pricy diesel. The telecom operator announced plans to investigate further green financing, possibly involving a green bond, after securing a sustainability-linked loan in September from a group of regional banks.
Although the company’s entry into the Ethiopian market is seen as a risky move with potential losses, analysts like Eric Musau from Standard Investment Bank believe that the company’s strong performance in Kenya helps to balance those losses, offering investors a positive outlook.
“It is a big market, so the losses from there are an important concern, but because they are being offset by the Kenyan business, it is really pleasant for investors.”