Vodacom Group has completed its acquisition of a larger effective stake in Safaricom, following the removal of a conservatory order by the Court of Appeal in Kenya and the fulfilment of necessary conditions. This move raises Vodacom’s holding in Safaricom to 55%, enabling it to consolidate its telecommunications and financial services businesses across Africa.
The transaction, valued at approximately US$2.1 billion, was initially announced in December 2025. It involves Vodacom obtaining a 15% stake from the Kenyan government and an additional effective 5% from Vodafone Group Plc, for US$0.26 per share. Despite this transaction, the Kenyan government retains a 20% stake in Safaricom, which is publicly traded on the Nairobi Securities Exchange.
As a result of this acquisition, Safaricom’s financial results will transition from being reported as an associate company to being fully consolidated with Vodacom’s financials, in line with International Financial Reporting Standards (IFRS). Vodacom reported an EBITDA of US$3.8 billion for FY26, while Safaricom’s EBITDA stood at US$1.8 billion.
The transaction recently faced legal scrutiny following a constitutional challenge by activists, including Tony Gachoka and Professor Frederick Ogola. They argued that the sale violates constitutional standards for the disposal of public assets, lacks sufficient public participation, and may undervalue government shares. They also raised concerns about the implications for the management of critical communications infrastructure.
Vodacom Group’s CEO, Shameel Joosub, remarked on the transaction’s completion, stating that acquiring majority control of Safaricom enhances Vodacom’s position as a market leader and unlocks potential for significant advances in digital and financial inclusion in both Kenya and Ethiopia. Safaricom’s M-PESA platform is especially noted for driving financial inclusion in Kenya and contributes 44% of its revenue.
John Mbadi, cabinet secretary at Kenya’s National Treasury, emphasised the historical significance of Safaricom, which has greatly contributed to the nation’s economic growth and infrastructure development. He reiterated that the government’s investment would be utilised for essential projects that will fuel Kenya’s future growth.
Vodacom plans to provide updates on its medium-term objectives around July 27, 2026, coinciding with the release of its first-quarter results. This acquisition marks a significant step in Vodacom’s Vision 2030 strategy, aimed at expanding operations in Africa’s dynamic markets.
