South Africa’s Vodacom Group has completed the acquisition of an additional stake in Kenya’s Safaricom, increasing its ownership in the East African telecommunications giant to about 55 percent and securing majority control of one of Africa’s largest telecoms and mobile financial services companies.
The transaction, valued at approximately US$2.1 billion (about R35 billion), was completed after Kenya’s Court of Appeal lifted a conservatory order that had delayed the deal and all remaining conditions were fulfilled.
Vodacom acquired an effective additional 20 percent stake in Safaricom, including a 15 percent shareholding from the Kenyan government and a further 5 percent effective stake from Vodafone Group. The purchase was completed at 34 Kenyan shillings per share.
Following the transaction, the Kenyan government retains a 20 percent stake in Safaricom, while public investors continue to hold 25 percent of the company, which remains listed on the Nairobi Securities Exchange.
The acquisition marks a major shift in ownership for Safaricom, Kenya’s leading telecommunications operator and the company behind the widely used mobile money platform M-Pesa, which has transformed digital payments across Africa.
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Vodacom, which is majority-owned by Britain’s Vodafone Group, said the increased stake would allow Safaricom’s financial results to move from being accounted for as an associate company to full consolidation in Vodacom’s accounts.
The deal strengthens Vodacom’s position in East Africa and gives it greater influence over a business that has become one of the continent’s most successful examples of combining telecommunications, technology and financial services.
Safaricom has built a dominant position in Kenya’s mobile market, with its M-Pesa platform becoming a key driver of financial inclusion by allowing millions of users to transfer money, pay bills and access financial services through mobile phones.
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The company’s growth has attracted global attention, with investors viewing mobile financial services as one of Africa’s fastest-growing technology sectors. Vodacom has previously highlighted plans to expand digital financial services and increase the reach of platforms such as M-Pesa across its markets.
The Kenyan government’s decision to sell part of its stake provides a significant financial boost while allowing it to retain a minority holding in the telecommunications company.
The transaction had faced legal challenges that temporarily delayed completion, but the Court of Appeal’s decision to stay the conservatory order cleared the way for the acquisition to proceed.
Analysts say the deal could bring additional investment capacity, regional expansion opportunities and stronger technology partnerships for Safaricom, although the transfer of majority control has also raised public debate in Kenya over ownership of one of the country’s most strategic corporate assets.
Vodacom has maintained that the acquisition is aimed at strengthening its African operations and unlocking further growth opportunities in telecommunications and financial services.
For Safaricom, the new ownership structure represents a new chapter for a company that has become closely associated with Kenya’s digital economy. The operator will continue operating as a listed Kenyan company, while Vodacom assumes greater responsibility for its strategic direction and financial performance.
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The completion of the deal further cements Vodacom’s ambitions to expand its footprint across Africa’s fast-growing technology and digital payments markets, with Safaricom serving as a key asset in its regional strategy.
