M-Pesa Africa Returns to Profit as User Base Hits 60 Million

M-Pesa Africa has returned to profitability after posting its first operating profit since its formation. The mobile money platform also expanded its reach to 60 million users across the continent.

The joint venture between Safaricom and South Africa’s Vodacom Group posted a net profit of Sh102.5 million in the year ended March 2026, reversing a Sh2.47 billion loss recorded a year earlier. Revenue grew 20.6 percent to Sh8.08 billion, driven by the introduction of new products and deeper market penetration across its licensed markets.

M-Pesa Africa manages the M-Pesa brand and licenses it to operators in eight countries through Safaricom, Vodacom and Vodafone. Its previous reported profit came in the year ended March 2020, when it recorded Sh6.59 billion following accounting gains from the acquisition of the M-Pesa brand from Vodafone Plc.

The venture provides technical and product solutions under a managed services agreement, charging operators a monthly fee equivalent to two percent of transaction revenue to recover acquisition costs through its share of profits.

Safaricom further strengthened its control of the M-Pesa business in 2023 after acquiring M-Pesa Holding Company Limited from Vodafone for one US dollar, taking ownership of the trust that holds customer funds.

In Kenya, M-Pesa remained Safaricom’s largest source of revenue, growing 13.4 percent to Sh182.74 billion and contributing 42 percent of the group’s Sh427.6 billion total revenue. Safaricom’s net profit rose 37 percent to Sh95.6 billion, supported by stronger M-Pesa earnings and reduced losses from its Ethiopia business.

Meanwhile, Vodacom increased its stake in Safaricom to 55 percent after raising its shareholding from 35 percent through the purchase of an additional five percent from Vodafone for Sh68.1 billion and a further 15 percent stake from the Kenyan government for Sh204.3 billion.