Vodafone Group is set to sell M-Pesa Holding Company Limited (MPHCL) to Safaricom, an associate entity of the Group, for $1.

Vodafone yesterday announced results for the year ended March, notifying the markets of the pending transaction. It said the group had entered into an agreement in April with Safaricom to sell MPHCL.

MPHCL holds M-Pesa customer funds on trust for the benefit of M-Pesa customers in Kenya.

UK-headquartered Vodafone said: “Balances included in the Group’s consolidated financial statements for MPHCL at 31 March 2023 include short term investments of €1,247 million and €1,226 million, due to M-Pesa customers, recorded within other investments and other creditors, respectively.”

It adds: “These sums are shown in the group’s consolidated financial statements in accordance with IFRS, but MPHCL acts as the independent trustee for M-Pesa customers, independently administering the trust and holding all funds from the M-Pesa customers on trust for the benefit of M-Pesa customers.

“Any profit generated by MPHCL, after defraying direct costs, is donated for use for public charitable purposes only. No material gain or loss is expected to arise on disposal. Completion of this transaction is subject to various approvals, which are expected to be obtained before or during July 2023.”

M-Pesa, jointly owned by Vodacom Group and Safaricom, is Africa’s most successful mobile money platform. Launched in Kenya in 2007, it has since evolved to become a major driver of financial inclusion with more than 50 million customers across seven countries.

The M-Pesa platform has processed $364.8 billion of transaction value over the last twelve months, up 13%, cementing its top position in the African fintech space.