In a strategic move reshaping Africa’s digital landscape, Vodacom Group has announced a R36 billion deal to acquire a controlling 55% stake in Kenya’s pioneering telecom and fintech leader, Safaricom.
The transaction, pending regulatory approvals, marks a strategic consolidation of Vodacom’s power in East Africa’s high-growth markets.
Vodacom will purchase a 15% share from the Government of Kenya and an additional 5% from Vodafone, its parent company, valuing the total acquisition at $2.1 billion or R36 billion.
This elevates Vodacom’s ownership from 35% and will see Safaricom’s financials fully consolidated into the group, boosting Vodacom’s revenue toward R220 billion.
Safaricom will remain listed on the Nairobi Stock Exchange.
The acquisition is a cornerstone of Vodacom’s Vision 2030, designed to deepen its leadership and scale its diversified portfolio across the continent.
It simplifies a complex ownership structure, granting Vodacom direct control over Safaricom’s formidable capabilities in mobile money via M-Pesa, lending, and digital wallets. This integration aims to accelerate financial inclusion and share best practices at scale across Kenya and Ethiopia.
“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepens 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 unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.
“Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future.
“I look forward to working even closer with the Safaricom team and taking some of the learnings from their success and leveraging it across the Group.”
The Kenyan government, retaining a 20% stake, framed the deal as a strategic fiscal move. Hon. John Mbadi, Cabinet Secretary for The National Treasury and Economic Planning, stated: “This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital, without increasing taxes or the countries debt burden, to allow additional investment in critical infrastructure to support future growth. Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20% stake as well as board representation.”
Widely regarded as one of Africa’s most attractive assets, Safaricom combines leading telecommunications with dominant fintech services through M-Pesa, alongside expanding cloud, IoT, and enterprise offerings. This transaction positions Vodacom to harness Safaricom’s robust growth trajectory and resilient cash generation, firmly connecting its purpose of building a better digital future to unparalleled scale and momentum in the region.
