Safaricom’s energy costs rose 22% in the first half of its 2027 financial year as the Kenyan telecommunications group expanded its network capacity and digital services across Kenya and Ethiopia, highlighting the growing electricity requirements of Africa’s digital infrastructure. The increase, reported on November 5, 2026, came alongside rising fixed broadband, mobile data and Internet of Things demand, placing energy efficiency and operating costs at the centre of the company’s expansion strategy.
Safaricom’s Kenya operating costs increased 9.3% to KSh38 billion during the six months ended September 2026, with energy costs among the main contributors, according to EcoNews. The company’s fixed and Internet of Things services generated KSh12.5 billion in revenue, an increase of 25.5%, while its fixed customer base expanded 31.8% to 569,900. Its network had passed 907,600 homes, reflecting continued investment in fibre and connectivity infrastructure.
The figures illustrate the relationship between digital access and energy demand. Telecommunications networks require continuous electricity to operate mobile towers, fibre infrastructure, data transmission equipment and supporting systems. As customer numbers and data consumption increase, operators must maintain network availability while expanding capacity, including in areas where grid access or power reliability may be limited.
For Kenya, the issue extends beyond the financial performance of one telecommunications company. Digital infrastructure supports mobile payments, public services, enterprise operations and access to information. Higher energy costs can therefore affect the economics of expanding connectivity, particularly where network investments are needed to reach rural communities and underserved markets.
Safaricom’s expansion also comes with a substantial capital expenditure programme. The company’s FY27 Kenya capital expenditure guidance stands at between KSh58 billion and KSh61 billion, with a further KSh6 billion to KSh9 billion allocated to Ethiopia, according to EcoNews. The investments cover network capacity, fixed connectivity and other infrastructure needed to support the company’s growing digital services.
The energy increase follows an earlier shift towards renewable power across Safaricom’s network. In October, the company reported that 2,028 network sites, representing 35.7% of its total, had been powered by green energy in the financial year ended March 2026. The transition included converting 596 sites to solar during the year, reducing diesel consumption from 10.47 million litres to 10.08 million litres.
According to reporting by the Nation, the reduction in diesel use saved approximately KSh196 million annually, while the company’s remaining diesel consumption was valued at about KSh2.3 billion. The figures indicate that energy efficiency has become both an environmental and a cost management consideration for telecommunications operators exposed to fuel-price volatility.
Safaricom has set a target of powering 95% of its network with green energy by 2030 and has a longer-term commitment to reach net-zero carbon emissions by 2050. Its progress will depend on the pace of solar deployment, access to reliable electricity and the operational requirements of network sites that continue to depend on backup generators.
The distinction between renewable energy deployment and total energy demand remains important. A company can increase its share of renewable power while consuming more electricity overall as its network expands. Safaricom’s rising energy costs therefore do not, by themselves, establish whether its emissions have increased or decreased during the period. That assessment requires information on total consumption, the energy mix and emissions associated with its operations.
The company’s digital growth also reflects broader changes in Kenya’s economy. Mobile data, fixed broadband and connected devices increasingly support businesses, public institutions and households. Safaricom’s Internet of Things customer base reached 2.4 million in the first half of FY27, while fixed network expansion continued to extend connectivity to additional homes.
These services can support productivity and access to markets, but the infrastructure required to deliver them must be financed and maintained. Electricity costs, fuel prices and network reliability are therefore relevant to the affordability of digital services and the financial sustainability of expanding coverage. The implications are particularly significant for operators serving areas where grid infrastructure is weaker or where backup power remains necessary.
Safaricom’s energy transition also sits within Kenya’s wider electricity system, which includes geothermal, wind, hydro and solar generation. The country has substantial renewable electricity resources, but the availability of power at specific network sites, the cost of connection and the reliability of supply remain practical considerations for operators. Greater use of solar and other low carbon sources could reduce exposure to diesel costs, although deployment requires investment in equipment, storage and maintenance.
The company’s experience highlights a broader infrastructure challenge for African economies: digital expansion increasingly depends on energy systems capable of supporting continuous, reliable and affordable electricity. Telecommunications operators are among the businesses directly exposed to this relationship, but the same considerations apply to data centres, digital payment platforms, industrial services and other technology-dependent sectors.
Safaricom’s stronger financial performance provides room for continued investment, but energy costs remain a factor in how efficiently that capital is deployed. Group service revenue rose 13.1% to KSh226.1 billion in the first half of FY27, while earnings before interest and taxes increased 39.8% to KSh91.1 billion, according to the company’s reported results. The financial gains coincided with lower losses at its Ethiopian operation and growth in its Kenyan business.
The central question for the company is whether network expansion can continue alongside a gradual reduction in dependence on diesel and more efficient use of electricity. Its renewable energy targets provide a framework, but progress will depend on measurable changes in energy consumption, emissions, network reliability and operating costs.
For Kenya’s digital economy, the outcome has implications beyond Safaricom’s balance sheet. Reliable connectivity supports financial inclusion, public-sector services and business activity, while the energy systems behind it influence the cost and resilience of those services. As telecommunications infrastructure grows, the ability to manage power demand and transition to cleaner energy will increasingly shape the economic and environmental performance of the sector.
