Vodacom Group has entered into an agreement with the Government of Kenya to acquire 15% of Safaricom PLC and an additional 5% from Vodafone at KES 34 per share, valuing the deal at USD 2.1 billion (ZAR 36 billion).
Should the transaction receive requisite approvals from regulatory and governmental authorities in Kenya, Ethiopia, and South Africa, this will see Vodacom’s stake in Safaricom—which will remain listed on the Nairobi Stock Exchange—increase from 35% to 55%.
The move is a key milestone in Vodacom’s Vision2030 strategy, which includes deepening its leadership in Africa’s high-growth markets and scaling its diversified portfolio. In accordance with International Financial Reporting Standards (IFRS), Safaricom’s financial results will transition from being accounted for on an associate basis to being fully consolidated, increasing Vodacom Group’s revenue towards ZAR 220 billion.
Shameel Joosub, CEO of Vodacom Group, said:
“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.”
Commenting on the transaction, Peter Ndegwa, Safaricom CEO, said:
“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.”
Safaricom is widely regarded as one of Africa’s most attractive assets, combining telecommunications, fintech, and technology services. It has consistently delivered strong financial results, with industry-leading margins and resilient cash generation. Through the flagship platform M-Pesa in Kenya, it drives high-growth fintech revenue, while expansion opportunities in Ethiopia and a growing suite of cloud, IoT, and enterprise services position Safaricom for continued growth.
On behalf of the Government of Kenya, Hon. John Mbadi, Cabinet Secretary for The National Treasury and Economic Planning, said:
“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.”
This transaction underscores Vodacom Group’s vision of converting scale, customer momentum, and strategic investments into sustainable value for all stakeholders, while staying true to its purpose of connecting people to a better future.
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