Vodacom Group has completed its acquisition of an additional effective stake in Safaricom, following the lifting of a conservatory order by the Court of Appeal of Kenya and the fulfilment of remaining conditions precedent.
The pan-African telecom operator's shareholding in Safaricom has increased to 55%, enabling consolidation of its telecommunications, financial services and technology businesses.
The transaction, valued at US$2.1 billion (R35 billion), was first announced in December 2025 and includes Vodacom acquiring a 15% stake from the government of Kenya and an additional effective 5% from Vodafone Group Plc, at KES34 (US$0.26) 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 results will move from being accounted for as an associate to full consolidation.
Vodacom Group reported EBITDA of R63 billion ($3,8bn) in FY26, while Safaricom reported EBITDA of R29 billion ($1,8bn).
The transaction faced legal challenges in recent weeks after a constitutional case was brought by activists Tony Gachoka, Professor Frederick Ogola, Samuel Kahara Macharia and Paul Maina Mugo.
They argue the sale breaches constitutional requirements governing the disposal of public assets, lacked adequate public participation and transparency, and undervalues government shares.
The group also contend the transaction raises concerns over control of strategic communications infrastructure.
Gachoka dismissed claims of investor uncertainty and fiscal prejudice as speculative, arguing that public interest also includes transparency, accountability and lawful management of public assets.
Commenting on the completion of the transaction, Vodacom Group CEO Shameel Joosub said: “Acquiring majority ownership in Safaricom strengthens our position as a market leader, while unlocking opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.
“I look forward to partnering with governments in Kenya and Ethiopia and working more closely with the Safaricom team, leveraging the learnings from their success across the group.”
Safaricom is regarded as one of Africa’s leading telecoms and fintech companies, combining telecommunications, financial services and technology at scale, according to Vodacom.
It added that Safaricom’s M-PESA platform drives financial inclusion, with 44% of revenue coming from fintech in Kenya. Its expansion into Ethiopia, where it has a customer base of about 14 million, alongside cloud, IoT and enterprise services, positions it for continued growth.
The completion of the transaction is a key milestone in Vodacom’s Vision 2030 strategy, focused on expanding in Africa’s high-growth markets and scaling its digital and financial services portfolio.
Vodacom now operates across markets from South Africa through East and Central Africa to Egypt, with Safaricom central to its East African operations.
Commenting on the transaction, John Mbadi, cabinet secretary at Kenya’s National Treasury, said: “Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence.
“That investment has grown into Safaricom - a company that has transformed financial inclusion, connected more than fifty million Kenyans, and contributed over one-and-a-half trillion shillings to the Exchequer.
“Today, we crystallise a portion of that value to invest in roads, energy systems, water infrastructure and airports that will power Kenya’s next chapter of growth. We do so lawfully, transparently, and with the express authority of Parliament. Safaricom’s best days are not behind it. They are ahead of it. And Kenya remains its home.”
Vodacom intends to update the market on its medium-term targets on or around 27 July 2026, when the group publishes its first-quarter results.
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