AXIAN Telecom announced on Wednesday that it has successfully acquired a 99.63% stake in Wananchi Group (Holdings) Ltd, the parent company of Zuku, a consumer broadband provider in Kenya, and Simbanet, which focuses on enterprise services.
This acquisition, finalised through AXIAN’s subsidiary, AXIAN Telecom Fibre Ltd (“Yas”), marks a crucial strategic move into the fixed broadband markets of Kenya and Uganda.
East Africa is currently among the fastest-growing regions for broadband in Africa, fueled by increasing data consumption and rapid digital transformation in businesses.
While specific financial details of the acquisition remain undisclosed, the process took almost 18 months to complete, involving necessary regulatory approvals, including the nod from the COMESA Competition Commission.
The transaction was bolstered by significant international funding, including a commitment of Ksh 9.6 billion (approximately $62.5 million) from the International Finance Corporation to help finance the deal.
This acquisition not only provides an exit strategy for Wananchi’s previous investors but also gives AXIAN control over a substantial network serving more than 1 million households across Kenya, Tanzania, Uganda, and Malawi.
Hassan Jaber, CEO of AXIAN Telecom, described this acquisition as a highly beneficial strategic move. He stated, “Wananchi Group’s network, customer relationships, and local expertise align perfectly with our ambition to lead in broadband connectivity across Africa. With our established presence in East Africa, this acquisition enhances our understanding of the region’s opportunities while opening up new vibrant markets in Kenya and Uganda.”
He further emphasised, “Together, we aim to unlock new growth, innovation, and value creation, providing improved access and new digital services to the communities and businesses we serve.”
This move comes at a time when Wananchi’s Zuku brand faces increasing competitive pressure from rivals such as Safaricom Home Fibre and Poa Internet, especially within Kenya.
With AXIAN at the helm, Wananchi is set to benefit from enhanced investment capabilities and extensive expertise within the group. Plans are already in place to expand Wananchi’s fibre-to-the-home services and its corporate SD-WAN and cloud connectivity solutions.
