Strengthening its position in East Africa, Vodacom has acquired a further 20% stake in Safaricom for $2,1-billion (R35-billion) – increasing its shareholding in the group to 55%.
The transaction sees Vodacom acquire a 15% stake from the Government of Kenya, and an effective further 5% from Vodafone, at KES34 per share. The Government of Kenya retains a 20% stake in Safaricom, which is listed on the Nairobi Securities Exchange. In accordance with IFRS, Safaricom’s financial results will transition from an associate to consolidation. Vodacom Group reported EBITDA of R63-billion at FY26, while Safaricom reported EBITDA of R29-billion.
“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa,” says Shameel Joosub, Vodacom Group CEO. “Acquiring majority ownership 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. 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.”
Safaricom is widely regarded as one of Africa’s leading companies, combining social impact, telecommunications, fintech and technology services at scale. Its flagship M-Pesa platform drives high-impact financial inclusion, evidenced by 44% of revenue coming from fintech in Kenya, while its expansion into Ethiopia – where it has established a growing customer base of about 14-million – and its suite of cloud, IoT and enterprise services positions it for continued growth.
Commenting on the transaction, Hon. FCPA John Mbadi, E.G.H., Cabinet Secretary, National Treasury of Kenya, said: “Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence,” says John Mbadi, cabinet secretary, National Treasury of Kenya. “That investment has grown into Safaricom – a company that has transformed financial inclusion across Africa, connected more than 50-million Kenyans, and contributed over KES1,5-trillion to the Exchequer. Today, we crystallise a portion of that extraordinary value to invest in the roads, the energy systems, the water infrastructure, and the airports that will power Kenya’s next chapter of growth.”