Vodacom secures majority control of Safaricom in $2.1bn acquisition

Vodacom Group has agreed to buy an additional 20% of Safaricom, 15% from the Government of Kenya and 5% from Vodafone, in a transaction valued at about $2.1 billion (≈R36 billion). If regulators in Kenya, Ethiopia and South Africa approve the deal, Vodacom’s holding in Safaricom will rise from 35% to a controlling 55%, while Safaricom itself will remain listed on the Nairobi Securities Exchange.

A strategic milestone for Vision2030

Vodacom says the acquisition is central to its Vision2030 plan to deepen leadership across Africa’s fastest-growing markets and to broaden its mix of services. Under International Financial Reporting Standards (IFRS) the accounting treatment will change: Safaricom’s results will move from being reported as an associate to being fully consolidated into Vodacom Group’s financial statements, pushing Vodacom Group’s reported revenue toward roughly R220 billion.

Why Safaricom matters

Safaricom is widely regarded as one of the continent’s most valuable technology assets because it combines mobile services, a market-leading fintech platform and enterprise technology offerings. Its M-Pesa payments platform in Kenya has been the primary driver of high-growth fintech revenue, while ongoing expansion efforts in Ethiopia plus a growing portfolio of cloud, IoT and enterprise services give the business further upside.

Leadership reaction

“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepens our impact across Africa. Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia. Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to working even closer with the Safaricom team and taking some of the learnings from their success and leveraging it across the Group.”
– Shameel Joosub, CEO, Vodacom Group

Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business. Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead. We look forward to deepening our collaboration as we continue to scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
– Peter Ndegwa, CEO, Safaricom

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Hon. John Mbadi, Kenya’s Cabinet Secretary for the National Treasury and Economic Planning, framed the deal in the context of a broader financing strategy: “This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital, without increasing taxes or the countries debt burden, to allow additional investment in critical infrastructure to support future growth. Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20% stake as well as board representation.”

The commercial mechanics

• Purchase price: KES 34 per share for the 20% stake (15% from the Kenyan government; 5% from Vodafone).

• Transaction value: approximately $2.1 billion (about R36 billion).

• Post-transaction ownership: Vodacom’s stake increases from 35% to 55%; the Kenyan government retains 20% and Safaricom stays publicly listed in Nairobi.

• Accounting impact: full consolidation of Safaricom into Vodacom’s group results under IFRS, materially boosting Vodacom’s reported revenue.

What this could mean across the region

For Vodacom, gaining operational control of Safaricom unlocks more direct access to Kenya’s mature mobile and fintech market and strengthens a platform to replicate Safaricom’s successes,

notably M-Pesa — across other markets such as Ethiopia. For Safaricom, closer integration with Vodacom may accelerate regional expansion, product integration (cloud, IoT, enterprise services) and cross-border fintech initiatives.

Key considerations and next steps

The transaction remains subject to regulatory and governmental approvals in Kenya, Ethiopia and South Africa. If approved, market watchers will be focused on:

• How Vodacom integrates Safaricom operationally and strategically.

• The commercial roadmap for M-Pesa and fintech expansion, particularly in Ethiopia.

• Governance changes following the shift to a Vodacom majority.

• The short-term impact on Vodacom’s reported financials and investor guidance once consolidation occurs.