South Africa’s telecommunications giant Vodacom Group has acquired a majority stake in Kenya’s Safaricom through a deal valued at R36 billion.
The transaction reinforces Vodacom’s commitment to expanding its presence across key East African markets, particularly Kenya and Ethiopia.
Under the terms of the agreement, Vodacom will purchase 15% of Safaricom from the government of Kenya and an additional 5% from Vodafone at a price of KES 34 per share.
The overall transaction values the acquisition at $2.1 billion, equivalent to approximately R36 billion. Once the necessary regulatory approvals are secured in South Africa, Kenya, and Ethiopia, Vodacom’s shareholding will rise from 35% to 55%, granting it majority control of the company, Business Tech reported.
Despite the ownership change, Safaricom will continue to be listed on the Nairobi Stock Exchange.
Vodacom stated that the acquisition is a central component of its Vision 2030 strategy, which focuses on strengthening leadership positions in Africa’s high-growth markets and expanding its diversified service portfolio.
In line with International Financial Reporting Standards (IFRS), Safaricom’s financial results will shift from being reported on an associate basis to full consolidation within Vodacom Group’s accounts.
This transition is expected to lift Vodacom’s total group revenue to approximately R220 billion.
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“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” said Shameel Joosub, CEO of Vodacom Group.
“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”
Joosub added that Safaricom’s strong operational history and distinct growth prospects align perfectly with Vodacom’s Vision 2030 objectives, creating opportunities for sustainable value for all stakeholders.
“Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business,” said Safaricom CEO Peter Ndegwa.
“We look forward to deepening our collaboration as we continue to scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
Vodacom described Safaricom as one of the most attractive assets in the sector due to its blend of telecommunications, fintech, and technology services.
The company highlighted Safaricom’s consistently strong financial performance, supported by industry-leading margins and resilient cash generation.
Its flagship M-Pesa platform in Kenya continues to fuel rapid growth in fintech revenues, while expansion opportunities in Ethiopia and the development of cloud, IoT, and enterprise services position the business for sustained further growth.
Kenya’s Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, noted that the deal enables the country to unlock capital without increasing national debt levels.
The government of Kenya will retain a 20% stake in Safaricom, maintaining the company as a strategic national investment.
Vodacom confirmed that the acquisition of majority control in Safaricom aligns with its objective to accelerate growth and enhance long-term value creation for its stakeholders.
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