Vodacom Group has struck a watershed deal with the Government of Kenya to acquire a 15% stake in Safaricom PLC and an additional 5% from Vodafone at 26c (KES34) per share, valuing the transaction at $2.1 billion (R36 billion).
In one of Africa’s biggest telecoms transactions, the agreement will give Vodacom majority control of Safaricom.
Shameel Joosub, CEO of Vodacom Group, said the acquisition, subject to regulatory approvals in Kenya, Ethiopia and South Africa, will raise the shareholding of Africa’s second largest telco in East Africa’s most profitable telecoms and fintech operator from 35% to a controlling 55%.
Joosub stressed that the multibillion-dollar transaction is central to its Vision2030 strategy and marks one of the most significant shifts in the region’s telecoms ownership landscape.
“This landmark transaction marks a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa. Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia. Safaricom’s differentiated growth outlook fits perfectly with our Vision2030 ambitions,” he said.
Under the agreement, Vodacom will also consolidate Safaricom’s financials in line with IFRS requirements, lifting Vodacom Group’s revenue base towards $12.8 billion (R220 billion) and tightening strategic control over M-Pesa, Africa’s most successful mobile money ecosystem.
Welcoming Safaricom’s largest ownership shake-up since 2008, its CEO, Peter Ndegwa, described Vodacom as a long-standing, trusted strategic partner.
“Vodacom has been part of Safaricom’s journey from the very beginning. Their continued commitment and long-term investment reflect confidence in our people, our strategy and the opportunities ahead,” he stated.
“We look forward to deepening our collaboration as we scale innovation, expand regionally and deliver transformative digital and financial services for our customers.”
Safaricom remains one of Africa’s most attractive assets, combining telecoms, fintech and digital services with strong margins and resilient cash generation.
The operator is also scaling new businesses in cloud, IoT and enterprise solutions, while Ethiopia’s high-growth potential presents additional upside.
Under the agreement, Kenya’s National Treasury will retain a 20% stake and board representation.
Treasury Cabinet Secretary John Mbadi described the deal as aligned with President William Ruto’s agenda to unlock capital without raising taxes or debt.
“Safaricom continues to be a key strategic investment for Kenya,” he said.
If approved, the transaction cements Vodacom’s position as a dominant force in Africa’s telecoms and fintech landscape, deepening its regional footprint and influence.
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