Vodacom,a South African multinational telecommunications company has acquired an additional 20% stake of Safaricom from Vodafone Kenya and Government of Kenya to increase its shareholding to 55%.
Vodacom reached an agreement to acquire 12.5% of the issued shares in Vodafone Kenya Limited, an effective 5% stake in Safaricom from Vodafone International Holdings B.V for consideration of US$0.5 billion (R9.0 billion), resulting in Vodacom owning 100% of Vodafone Kenya.
Vodacom through Vodafone Kenya reached an agreement to acquire 15% of the issued share capital of Safaricom from the Government of Kenya for a consideration of US$1.6 billion (R27.0 billion).
Vodacom mentioned that Vodafone Kenya has agreed to buy the right to receive future Safaricom dividends amounting to KES 55.7 billion (R7.4 billion), that would have accrued to the GOK on its remaining shares in Safaricom for an upfront payment of KES 40.2 billion (R5.3 billion).
The telecommunications giant stated that the acquisition is conditional on certain conditions precedent, including, but not limited to, confirmation by the Capital Markets Authority of Kenya that Vodacom is exempted from making an offer to the listed Safaricom minorities.
The company statement further stated that Vodafone Kenya, an 87.5% owned subsidiary of Vodacom, holds as its only asset a 39.9% interest in Safaricom. After completion of the Acquisition, Vodafone Kenya will be wholly owned subsidiary of Vodacom and will hold a 54.9% interest in Safaricom.
According to Vodacom, Safaricom is the market leader in Kenya, with a 65% customer market share and achieving a return on capital employed (ROCE) exceeding 50%. Safaricom achieved an EBITDA margin of 57.3% in Kenya, for the six-month period ended 30 September 2025, and has a track record of excellent free cash flow generation. Additionally Safaricom's M-Pesa is a world-leading fintech business, facilitating over 100 million daily transactions with 38 million M-Pesa customers in Kenya. The company is also the majority shareholder in Safaricom Ethiopia, the new mobile operator in Ethiopia, which has already attracted over 11 million customers.
The statement clarified that after the acquisition, the shareholders in Safaricom will be: Vodacom (55%),GOK (20%), with the remainder held by public investors on the Nairobi Securities Exchange listing (25%).
Vodacom pointed out the acquisition is subject to approvals from certain regulatory and governmental authorities in Kenya, Ethiopia and South Africa, including key bodies such as the Kenyan Cabinet, Central Bank of Kenya, Kenyan National Assembly, Kenyan and Ethiopia Communications Authority, COMESA Competition Commission and the Ethiopian Ministry of Trade.
“This landmark transaction will mark 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 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 in Kenya and leveraging it across the Group,” said Shameel Joosub, CEO of Vodacom.
“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,” said Peter Ndengwa, CEO of Safaricom.