AXIAN Telecom announced on Wednesday that it has completed the acquisition of a 99.63% ownership in Wananchi Group (Holdings) Ltd, the parent company of Kenya's consumer broadband provider Zuku and enterprise-focused Simbanet.
The transaction, which was finalised through AXIAN's fibre optics subsidiary, AXIAN Telecom Fibre Ltd ("Yas"), marks the company's significant strategic entry into the Kenyan and Ugandan fixed broadband markets.
East Africa is one of the continent's fastest-growing broadband regions, driven by surging data consumption and rapid enterprise digitalisation.
While the financial terms of the acquisition were not disclosed, the transaction was a protracted one, taking nearly 18 months to complete and required regulatory approvals, including approval from the COMESA Competition Commission.
The transaction was supported by substantial international investment, including a Ksh 9.6 billion ($62.5 million) commitment from the International Finance Corporation to assist fund the deal.
The acquisition provides an exit for Wananchi's previous investors while also giving AXIAN control of a substantial network that serves over one million homes in Kenya, Tanzania, Uganda, and Malawi.
Hassan Jaber, CEO of AXIAN Telecom, described the transaction as a perfect strategic fit.
He said: Wananchi Group’s network, customer relationships, and local expertise align perfectly with our ambition to be a leader in broadband connectivity across Africa. Yas already has a strong presence in East Africa, and this acquisition builds on our deep understanding of the region’s opportunities and needs while giving us access to new vibrant markets in Kenya and Uganda.’
‘’Together, we will unlock new potential for growth, innovation, and value creation, delivering better access and new digital services for the communities and businesses we serve”.
The move comes as Wananchi's Zuku brand is under significant competitive pressure from rivals like as Safaricom Home Fibre and Poa Internet, particularly in Kenya.
Under its new ownership, Wananchi will benefit from AXIAN's increased investment capacity and group-wide expertise.
The new parent company intends to expand Wananchi's fiber-to-the-home offerings, as well as its corporate SD-WAN and cloud connectivity solutions.
Bertrand Lacroix, CEO of AXIAN Telecom Fibre, said the company will focus on investment first, after which it will review a potential rebranding of the Zuku name’’
“We are committed to bringing high-speed Internet to millions more Africans. Our strong performance so far, doubling of our fixed broadband base and achieving double-digit revenue and EBITDA growth, shows the strength of our model.”
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