Vodacom Group has finalised a significant agreement with the Government of Kenya to acquire a 15% stake in Safaricom PLC, along with an additional 5% from Vodafone at 26 cents per share, bringing the total transaction value to $2.1 billion.
This landmark deal marks one of the largest telecom transactions in Africa, enabling Vodacom to gain majority control of Safaricom.
Shameel Joosub, CEO of Vodacom Group, stated that this acquisition, pending regulatory approvals in Kenya, Ethiopia, and South Africa, will elevate Vodacom’s stake in the region’s leading telecom and fintech operator from 35% to a controlling 55%.
Joosub emphasised that this substantial investment aligns with Vodacom’s Vision2030 strategy and represents a crucial transformation in the telecom ownership landscape in the region.
“This significant transaction is a vital milestone in Vodacom’s efforts to accelerate growth and enhance our impact throughout Africa. Gaining a controlling interest in Safaricom reinforces our market leadership and opens the door to expanded digital and financial inclusion in Kenya and Ethiopia. Safaricom’s promising growth potential aligns seamlessly with our Vision 2030 objectives,” he said.
As part of the agreement, Vodacom will integrate Safaricom’s financials in compliance with IFRS standards, pushing the Group’s revenue closer to $12.8 billion while solidifying control over M-Pesa, recognised as Africa’s most successful mobile money platform.
Peter Ndegwa, CEO of Safaricom, welcomed this significant change in ownership, noting Vodacom’s longstanding partnership. “Vodacom has played an integral role in Safaricom’s journey since its inception. Their ongoing investment demonstrates their trust in our team, strategy, and the promising opportunities ahead,” he remarked.
Ndegwa expressed optimism about enhancing collaboration to drive innovation, expand into new markets, and offer transformative digital and financial services to customers. Safaricom remains a highly sought-after asset in Africa, combining telecommunications with fintech and digital services while maintaining strong profit margins and reliable cash flow. The company is exploring new growth avenues in cloud computing, IoT, and enterprise solutions, bolstered by Ethiopia’s high-growth potential.
Under the terms of this agreement, Kenya’s National Treasury will maintain a 20% stake and representation on the board. Treasury Cabinet Secretary John Mbadi stated that the deal aligns with President William Ruto’s goal of unlocking capital without increasing taxes or debt.
“Safaricom remains a strategic investment for Kenya,” he asserted.
If the acquisition receives regulatory approval, it will solidify Vodacom’s status as a key player in Africa’s telecom and fintech sectors, further extending its regional influence.
