Why Foreign Investors Are Selling Kenyan Shares — And Why Local Investors Are Buying More NSE Stocks Published: May 20, 2026 | By Money Market Hub Kenya Research Desk Quick Summary: Foreign investors have reduced activity at the Nairobi Securities Exchange (NSE) over the past few years. At the same time, Kenyan investors are becoming more active through pension funds, SACCO-linked investments, insurance firms, and retail participation. This report explains what is happening, why it matters, and what investors should understand about the future of the Kenyan stock market. Start Here If you are new to investing in Kenyan shares, these beginner guides will help you understand the market before reading this analysis. KES 50,000 Investment Plan in Kenya How to Analyze Kenyan Stocks Using Fundamental Analysis Cheap vs Expensive Shares in Kenya About the Author Disclaimer and Disclosure What You Need to Know The NSE is changing structurally, not collapsi...
Safaricom’s FY2026 results reflect a period of strong recovery and improved operational performance after several years of heavy investment and regional expansion pressure.
The company remains the most influential listed firm on the Nairobi Securities Exchange due to its dominance in telecommunications, mobile money (M-PESA), and digital financial services.
Unlike previous years where growth was constrained by expansion costs — particularly in Ethiopia — the FY2026 results indicate improved efficiency, stronger profitability, and renewed investor confidence.
This analysis breaks down the financial performance in a practical, investor-focused way to help you understand what the numbers mean beyond headlines.
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Revenue Performance
Revenue increased from KES 388.7 billion to KES 427.6 billion, representing approximately 10% growth.
Key Growth Drivers:
M-PESA transaction growth
Higher data consumption
Enterprise solutions expansion
Growing digital ecosystem services
M-PESA Expansion
Digital transaction volumes continued rising as businesses and individuals increasingly relied on mobile money for daily transactions.
Data Usage Growth
Higher smartphone penetration and increased internet usage continued driving strong data revenue growth.
Enterprise Solutions
Safaricom continued expanding business connectivity, cloud services, and digital infrastructure solutions.
Profit Growth Analysis
Profit after tax rose sharply from KES 45.8 billion to KES 73.7 billion.
This was one of the strongest indicators in the FY2026 results and reflects improving operational efficiency and stronger profitability.
Key Profit Drivers
Impact
Cost Efficiency
Improved Margins
M-PESA Growth
Higher-Margin Revenue
Reduced Expansion Pressure
Lower Operational Strain
Digital Services
Stronger Profitability
Dividend Analysis
Safaricom increased its total dividend from KES 1.2 per share to KES 2 per share.
Dividend Breakdown:
Interim Dividend: KES 0.85
Final Dividend: KES 1.15
Total Dividend: KES 2
Shares Owned
Estimated Annual Dividend
1,000 Shares
KES 2,000
10,000 Shares
KES 20,000
100,000 Shares
KES 200,000
Valuation Analysis
Safaricom’s P/E ratio increased from 10.5x to 12.6x as investor confidence improved following the strong FY2026 results.
What Investors Should Monitor:
Future earnings growth
Dividend sustainability
Competition in telecom and fintech
Ethiopia expansion progress
Valuation Analysis
Safaricom’s P/E ratio increased from 10.5x to 12.6x as investor confidence improved following the strong FY2026 results.
What Investors Should Monitor:
Future earnings growth
Dividend sustainability
Competition in telecom and fintech
Ethiopia expansion progress
Risks Investors Should Consider
Competition:
Mobile money and telecom competition continues increasing.
Regulation:
Future taxation or mobile money regulation may affect profitability.
Ethiopia Expansion:
Operational and political uncertainties remain.
Economic Conditions:
Slower economic growth could reduce transaction activity and consumer spending.
Future Outlook for FY2027
Ethiopia expansion progress
M-PESA growth trajectory
5G and internet demand
AI and digital service integration
Dividend sustainability
Future performance will largely depend on Safaricom’s ability to maintain profitability while managing long-term expansion risks.
Investor Feedback & Community Insights
Your perspective helps strengthen the investment community for all readers.
Discussion Points
Do you believe Safaricom is fairly valued after the recent rally?
Is dividend growth or capital appreciation more important in your strategy?
What risks should investors monitor most closely?
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Frequently Asked Questions
Is Safaricom still a good investment?
Safaricom remains attractive due to strong dividends, stable cash flow, and digital market leadership.
Why did profits rise sharply?
Improved efficiency, stronger digital revenue, and reduced expansion pressure supported profitability.
Is the dividend sustainable?
Current cash flow supports the dividend comfortably, although future sustainability depends on earnings growth.
What remains the biggest risk?
Competition, regulation, and execution risks related to Ethiopia expansion remain key factors.
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