Safaricom’s mobile services platform, M-Pesa, has posted impressive financial results for the financial year ending March 2023. According to audited results released by the company, Kenyans transacted a staggering Ksh.35.86 trillion through the platform, representing a growth of 21.4% in total transaction value, with volumes rising by 33.5% to Ksh.21.03 billion. This is a remarkable feat and underscores M-Pesa’s status as Safaricom’s leading revenue earner, accounting for 39.7% of service revenue.
M-Pesa’s growth can be attributed to increased usage and growth of chargeable transactions per one-month active customers, which rose by 16.2%. However, it is important to note that the slowdown in M-Pesa’s growth was mainly due to macroeconomic effects on the economy that affected business activity. Despite this, the platform’s monthly active customers grew by 5.2% to 32.11 million, with the average revenue per unit (ARPU) rising 1.9% YoY (Year over Year) to Ksh.311.28.
In addition to the impressive financial results, Safaricom has been granted a license to operate mobile money services in Ethiopia, which is a significant milestone for the company. The CEO, Peter Ndegwa, expressed his excitement at the prospect of providing essential financial services to the Ethiopian population. Since the commercial launch in October, the M-Pesa brand has become deeply rooted in Ethiopian society and is quickly becoming part of the fabric of society.
However, it is not all good news for Safaricom, as the company’s profit for the financial year ending March 2023 was Ksh.52.5 billion, a 22% dip from the Ksh.67.5 billion recorded in 2022. The drop in profit was attributed to factors such as the Russia-Ukraine war and the 2022 General Election. Nevertheless, the company remains optimistic about its future prospects, especially with the recent license to operate mobile money services in Ethiopia.