Vodacom Group has announced a major transaction that will significantly increase its ownership in Safaricom PLC, strengthening its position in Kenya and the wider East African region. The telecommunications multinational confirmed that it has entered into an agreement to purchase a 15 percent stake in Safaricom from the Government of Kenya and an additional 5 percent from Vodafone.
The buyout is priced at 34 shillings per share and values the total deal at approximately 2.1 billion dollars. The completion of the transaction is subject to approvals from regulatory and government authorities in Kenya, Ethiopia and South Africa. Once finalized, Vodacom’s shareholding in Safaricom will rise from 35 percent to 55 percent.
Safaricom will remain listed on the Nairobi Securities Exchange.
A Major Step in Vodacom’s Expansion Strategy
The acquisition is aligned with Vodacom’s Vision2030 strategy which focuses on strengthening its footprint in high potential African markets and scaling its technology and financial services offerings. Increasing its stake gives Vodacom greater control over one of Africa’s most profitable and influential telecommunications companies.
With this shift in ownership structure, Safaricom’s financial performance will be consolidated into Vodacom Group’s results. This is expected to boost Vodacom’s revenue towards 220 billion rand as it transitions from accounting Safaricom as an associate to a fully consolidated business.
Vodacom CEO Shameel Joosub described the deal as a transformative investment. According to him, controlling ownership in Safaricom will accelerate growth while deepening digital and financial inclusion in both Kenya and Ethiopia. He noted Safaricom’s strong performance record and long term growth prospects as a key driver of the acquisition.
He added that the partnership will support innovation and help replicate Safaricom’s success in other Vodacom markets across the continent.
Safaricom’s Performance and Expansion Plans
Safaricom is ranked among Africa’s strongest technology and telecommunications brands. In addition to its core mobile and data business, the company has built one of the continent’s largest fintech ecosystems through the mobile money service M Pesa.
The platform continues to deliver strong revenue growth from payments, credit, merchant services and international remittances. Safaricom is also investing heavily in enterprise solutions including cloud services, Internet of Things and digital security. These sectors are expected to be major drivers of future income.
Regionally, the company is expanding its telecom and fintech footprint in Ethiopia. As one of Africa’s largest undeveloped telecom markets, Ethiopia provides new scale opportunities for Safaricom and adds long term strategic value for Vodacom.
Safaricom CEO Peter Ndegwa welcomed Vodacom’s renewed investment and long term backing. He highlighted the partnership’s track record in building innovation and reaching new customers. He stated that increased collaboration will strengthen Safaricom’s mission to deliver transformative digital experiences and grow beyond Kenya.
Government Retains Significant Interest
The Government of Kenya considers Safaricom a key national asset. While selling part of its shareholding, it will retain a 20 percent stake and board representation.
According to National Treasury Cabinet Secretary John Mbadi, the transaction supports the government’s strategy to unlock capital without raising taxes or increasing the national debt. The funds raised will be channeled into critical infrastructure investments that support future economic growth.
The government emphasized that Safaricom remains central to the country’s digital transformation agenda and private sector development.
A Deal That Signals Strong Confidence
The transaction reinforces Safaricom’s status as one of Africa’s most valuable enterprises. For Vodacom, securing a majority stake offers greater alignment of strategy, improved operational coordination and full access to Safaricom’s financial performance.
If approved, the deal will reshape the competitive landscape in East Africa’s telecom and digital services markets and further position Vodacom as a leading player in high growth economies.
