Safaricom shares just had the busiest month since the company listed on the Nairobi Securities Exchange in 2008. The stock closed at KSh 35.95 on July 13, up close to 27% since the start of the year. Vodacom Group finished buying 15% of the government’s stake for KSh 244.5 billion. And the company just declared a record KSh 2.00 per share dividend, its biggest payout ever. If you are wondering whether Safaricom shares are still worth buying in 2026, or whether you already missed the move, here is the honest answer, not another recycled CDS account tutorial.
Quick answer: Yes, Safaricom is still one of the better blue-chip buys on the NSE, backed by record profit, a dividend that jumped 67% in a single year, and a majority owner in Vodacom with deeper pockets than the government it replaced. But buy it for the dividend and the long game, not because you think the Vodacom headlines alone will push the price higher from here. And do not put your whole portfolio into one stock, however good the story sounds right now.
If you have never bought a share in your life, start with our guide on starting to invest in Kenya, then come back here once you understand the basics of a CDS account.
What just happened to Safaricom stock?
In the space of about six weeks, Safaricom completed a KSh 244.5 billion ownership shakeup, declared its largest dividend ever on record FY26 profit, and rallied to a 52-week high. Vodacom’s stake rose from 40% to 55%, the government’s fell from 35% to 20%, and the public float held steady at 25%.
Vodacom Group completed its purchase of the government’s 15% stake on June 30, paying KSh 204.3 billion for the shares plus another KSh 40.2 billion to the Treasury in exchange for its claim on future dividends from the remaining government stake, a combined KSh 244.5 billion. Around the same time, Safaricom posted its FY26 results, the year to March 31, 2026: revenue of KSh 420.99 billion and net profit of KSh 99.7 billion, up 67.3% on the year before, driven mostly by M-Pesa growth in Kenya and sharply reduced losses in Ethiopia. On the back of that, the board raised the total dividend to KSh 2.00 per share, up from KSh 1.20, a jump of 66.7% and the sharpest single-year increase since the company listed, according to Business Daily’s coverage of the results.
I have watched SCOM chop around 5 to 10% within a few weeks before, more than once. One strong month does not guarantee the next one looks the same. What is different this time is that the strong month is backed by actual earnings growth, not just deal headlines.
Should you buy Safaricom shares right now?
Yes, if you want steady dividend income and exposure to Kenya’s most profitable listed company, and you are not putting your entire stock portfolio into one counter. The trade-off is that you are buying after a 27% rally this year, not before one.
Here is the honest breakdown of what is pulling in each direction:
| Case | What’s driving it |
| Bull | Record FY26 profit (KSh 99.7bn), dividend up 66.7% to KSh 2.00/share, Ethiopia’s losses shrinking fast, Vodacom’s deeper balance sheet as majority owner, average analyst rating of “Strong Buy” |
| Bear | Stock already up roughly 27% year to date before you buy, court petitions argued the government sold its stake below fair value, single-stock concentration risk, Ethiopia still not profitable |
Analysts covering the stock are, on average, still bullish, with a consensus “Strong Buy” rating and a 12-month price target of KSh 38.46, based on data compiled by afx.kwayisi.org. That target implies further room to run, but it is not a promise, and price targets like this get revised the moment new results land.
The Vodacom deal, explained simply
Before the deal, ownership looked like this: the government held 35%, Vodacom Group held 40%, and the public, that includes you, if you own shares, held the remaining 25%. After the deal closed on June 30, 2026, Vodacom holds 55%, the government holds 20%, and the public float is unchanged at 25%, according to tech-ish’s breakdown of the completed transaction.
The government did this to raise cash without borrowing more or raising taxes. The KSh 244.5 billion is earmarked for the National Infrastructure Fund, a vehicle President Ruto signed into law in March 2026 to fund railways, roads, power lines, and irrigation projects.
It was not a smooth ride to get here. Petitioners including Tony Gachoka and Fredrick Ogola sued to block the sale, arguing the KSh 34 per share price undervalued Safaricom and that public participation had been inadequate. Former Vice President Kalonzo Musyoka joined the case as senior counsel. The High Court froze the transaction on March 23, 2026, and the Court of Appeal lifted that freeze on June 26, 2026, clearing the way for the deal to close four days later. MMS Advocates has the full legal timeline if you want the details.
For you as a retail shareholder, a change in who holds the majority stake does not directly change how your dividend gets paid or how your shares trade day to day. What it does change is who is steering long-term strategy, and Vodacom now has more skin in the game than the government did.
How much would you actually earn from Safaricom dividends?
At the new KSh 2.00 per share rate, 1,000 Safaricom shares earn you KSh 2,000 a year in dividends, 5,000 shares earn KSh 10,000, and 10,000 shares earn KSh 20,000, before tax. At the current price of about KSh 35.95, that works out to a dividend yield of roughly 5.6%, one of the better yields among NSE blue chips right now.
| Shares held | Approx. cost at KSh 35.95 | Annual dividend (gross) | After 5% withholding tax |
| 100 (minimum) | KSh 3,595 | KSh 200 | KSh 190 |
| 1,000 | KSh 35,950 | KSh 2,000 | KSh 1,900 |
| 5,000 | KSh 179,750 | KSh 10,000 | KSh 9,500 |
| 10,000 | KSh 359,500 | KSh 20,000 | KSh 19,000 |
Kenya charges a 5% withholding tax on dividends paid to resident shareholders. It is deducted automatically before the money lands in your CDS-linked bank account, and KRA treats it as a final tax, meaning you do not need to declare it separately. The final FY26 dividend of KSh 1.15 per share still needs shareholder approval at the AGM on July 31, 2026. To qualify for it, you need to be on the shareholder register by close of business on August 4, 2026, with payment expected around September 4, based on the payment schedule Safaricom disclosed. If you are buying specifically to catch this payout, that book closure date is the one to watch, not the AGM date itself.
How to buy Safaricom shares in 2026
The mechanics have not changed much. You need a CDS account, which you can open through a licensed stockbroker, a bank, or directly via USSD on *543#. Once it is active, you fund it through M-Pesa paybill, bank transfer, or in some cases Bonga points, then place an order for a minimum of 100 shares through your broker’s app or a form. We already broke down the full step-by-step process, including which brokers accept M-Pesa directly and typical transaction fees, in our guide on how to open a CDS account and buy shares, so there is no need to repeat it here.
One thing worth knowing specifically for Safaricom: because it is the most heavily traded stock on the NSE, accounting for well over a third of total market capitalization, orders tend to fill faster than on thinner counters. You are unlikely to wait long for your trade to execute.
The risks you shouldn’t ignore
Safaricom is a strong company, but buying only Safaricom shares means betting your entire stock portfolio on one company in one market. The price swings 5 to 10% within weeks fairly often, Ethiopia is still not profitable, and Kenyan courts have already shown they are willing to freeze major transactions involving the stock. None of that makes Safaricom a bad buy, but it means you should not go all in.
Safaricom’s Ethiopia unit is targeting breakeven by March 2027, which is progress, but it is a target, not a done deal. If your goal is safety over growth, or you simply want to diversify away from single-stock risk, Kenya’s Treasury bills and bonds are worth comparing against Safaricom’s dividend yield before you decide how much to put into shares versus fixed income. A CMA-licensed broker can also walk you through how much single-stock exposure makes sense for your situation. This is not financial advice, and shares can lose value just as easily as they can gain it.
Frequently asked questions
What is Safaricom’s dividend per share in 2026?
Safaricom’s total dividend for FY26 is KSh 2.00 per share, made up of an interim dividend of KSh 0.85 already paid in March 2026 and a final dividend of KSh 1.15 pending shareholder approval at the AGM on July 31, 2026.
Is Safaricom a good stock to buy in 2026?
Safaricom is generally seen as one of the stronger blue-chip options on the NSE, with record FY26 profit, a growing dividend, and majority backing from Vodacom Group. It still carries normal stock market risk, and analysts rate it a “Strong Buy” on average rather than a guaranteed win.
How do I buy Safaricom shares using M-Pesa?
Open a CDS account through a licensed broker or via *543#, then fund your trading account through the broker’s M-Pesa paybill number. Once the funds reflect, place your buy order for Safaricom (ticker SCOM) for a minimum of 100 shares through the broker’s app or by instructing them directly.
What is the Safaricom ex-dividend date for the 2026 final dividend?
You need to hold your Safaricom shares before the book closure on August 4, 2026 to qualify for the final dividend. Payment is expected around September 4, 2026, subject to shareholder approval at the July 31 AGM.
What happened to the government’s Safaricom shares?
The government sold 15% of its 35% stake to Vodacom Group for KSh 204.3 billion, completed on June 30, 2026, dropping its holding to 20%. Vodacom’s ownership rose from 40% to 55%, and the public float stayed at 25%.
Will Safaricom’s share price keep rising?
Nobody can promise that. The stock is up around 27% year to date and analysts have an average price target of KSh 38.46, which suggests some further room, but Safaricom has corrected 5 to 10% within weeks before and could again. Buy based on the dividend and the fundamentals, not a bet that the current rally continues indefinitely.
The bottom line
If you have decided this is a buy, the practical move is to open your CDS account this week, well ahead of the August 4 book closure, so you are on the register in time for the September dividend payment. If you are still deciding how much of your money should go into a single stock versus safer instruments, work that out before you fund the account, not after.
