Vodacom takes control of Kenyan giant 

Vodacom has announced that it is increasing its stake in Kenyan giant Safaricom from 35% to 55%, effectively taking control of the company behind the revolutionary M-Pesa. 

The South African company will acquire the addition stake for R36 billion from the Kenyan government and Vodafone. 

Under the terms of this transaction, Vodacom has entered into an agreement with the Government of Kenya to acquire 15% of Safaricom and an additional 5% from Vodafone.

The transaction is pending the requisite approvals from regulatory and governmental authorities in Kenya, Ethiopia, and South Africa. When it is concluded, it will see Vodacom’s stake in Safaricom increase from 35% to 55%.  

It will also significantly impact Vodacom’s financial performance, with Safaricom’s financial results transitioning from being accounted for on an associate basis to being fully consolidated. This will increase Vodacom’s  revenue towards R220 billion.

Vodacom said 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. 

“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” Vodacom CEO Shameel Joosub said. 

“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocking 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.” 

The acquisition of the further 20% of Safaricom continues an investment journey that began in 2017, when Vodacom snapped up a 34.94% stake in the Kenyan company. 

“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,” Safaricom CEO Peter Ndegwa said. 

“Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead.” 

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 exploring expansion opportunities in Ethiopia.