East Africa’s Corporate Landscape Shifts: Safaricom Leads, Tanzanian Banks Rise
The latest regional survey shows Safaricom maintaining its position as the largest company in East Africa by market capitalization, while Tanzanian lenders CRDB Bank and NMB Bank have surged into the top four spots. This shift reflects both the telecom giant’s profitable expansion into Ethiopia and a broader strengthening of Tanzania’s banking sector.
Safaricom’s Dominance and Profit Surge
With a market capitalization of approximately $8.4 billion, Safaricom outpaces its nearest competitors by a wide margin. The Kenyan telecom operator reported a 55 % increase in half‑year profit to 65.2 billion shillings (≈ US$501 million) for the period ending September 2025 [Safaricom H1 2025 results]. This growth was driven largely by improved performance in its Ethiopian operations, which have begun to contribute positively to the group’s bottom line.
Industry analysts note that Safaricom’s scale, entrenched customer base, and diversified revenue streams give it a durable advantage over rivals such as MTN Uganda and Kenya’s leading banks [Financial Times, 2024]. The company’s consistent dividend payouts and strong cash‑flow generation further reinforce its reputation as a reliable investment in the region.
Ethiopia Expansion and M‑Pesa Growth
Safaricom entered Ethiopia in 2022 following the country’s telecom deregulation, a move that initially weighed on earnings. However, the half‑year loss in Ethiopia narrowed by 59 % compared with the same period in 2024, signaling a rapid turnaround [Ethio Telecom press release, 2025].
More strikingly, revenue from the mobile financial service M‑Pesa jumped from 10.9 billion shillings (≈ US$84 million) to 88.1 billion shillings (≈ US$678 million) over the same six‑month window [Safaricom H1 2025 results]. This surge underscores the growing adoption of digital payments across East Africa and highlights M‑Pesa’s role as a key profit driver for Safaricom.
Tanzanian Banks’ Ascendancy: CRDB and NMB
CRDB Bank and NMB Bank have recorded impressive gains, propelling them into the third and fourth positions in the regional ranking. CRDB’s market capitalization rose by $762 million to reach $2.7 billion, while NMB climbed from $1.1 billion to the same $2.7 billion level over the last twelve months [CRDB Annual Report 2024] [NMB Annual Report 2024].
This marks the first time that Tanzania’s two largest banks have surpassed traditional Kenyan heavyweights such as Equity Bank and KCB Group in overall size. Their success stems from a combination of strong retail lending growth, effective cost management, and supportive monetary policies enacted by the Bank of Tanzania [BoT Monetary Policy Statement, 2024].
Broader Regional Context
Despite the rise of CRDB and NMB, Kenya’s banking sector remains more diversified and robust. Eleven Kenyan‑based companies across various sectors appear in the regional top 20, compared with six Tanzanian and three Ugandan entrants [AfDB East Africa Competitiveness Report, 2025]. The telecommunications and banking sectors continue to dominate the list, reflecting the region’s ongoing digital transformation and financial deepening.
In Tanzania, CRDB and NMB together account for roughly 60 % of total bank profits, a concentration that contrasts with the more fragmented Kenyan market where no single institution holds such a dominant share [World Bank Tanzania Overview, 2025]. Foreign‑owned banks operating in Tanzania have faced headwinds, including currency volatility and regulatory adjustments, which have contributed to a relative decline in their income streams.
Overall, the data illustrate a dynamic East African economy where telecom leadership coexists with emerging banking powerhouses. Investors and policymakers should monitor how Safaricom’s Ethiopian venture matures and whether Tanzanian banks can sustain their growth trajectory amid evolving macro‑economic conditions.
