Vodacom takes over Kenyan giant in R35 billion deal

Vodacom has announced the successful closing of its deal to acquire a further 20% stake in Kenyan telecommunications provider Safaricom.

This will see Vodacom’s effective shareholding in Safaricom climb to 55%, granting the South African telecoms giant a majority stake in the company.

15% of this will come from the Kenyan government, which will retain a 20% stake in Safaricom, with another 5% coming from Vodafone Group.

The deal worth $2.1 billion (R35 billion) was first announced in December 2025, with the shares being acquired at a price of KES34 per share.

In a media release announcing the close of the acquisition, Vodacom Group CEO Shameel Joosub described the deal as a landmark moment for both companies.

“Acquiring majority ownership in Safaricom strengthens our position as a market leader, unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Joosub said.

“I look forward to partnering with governments in Kenya and Ethiopia and working even closer with the Safaricom team, leveraging the learnings from their success across the group.”

According to Joosub, the Safaricom acquisition aligns with Vodacom’s Vision 2030 strategy to diversify its offerings and expand its footprint across the African continent.

Alongside Safaricom serving as the focal point for Vodacom’s presence in East Africa, the company also has operations in Central Africa in the Congo, as well as North Africa in Egypt.

In accordance with International Financial Reporting Standards, Safaricom’s financial results will transfer from association to consolidation with those of Vodacom.

For the 2025/26 financial year, the Vodacom Group reported an EBITDA of R63 billion, while Safaricom recorded R29 billion in the same year.

Vodacom said it will update the market on its medium-term targets on or around 27 July 2026, when the Group will publish its first set of quarterly results.

Kenyans opposed to the deal

Vodacom’s acquisition of further shares in Safaricom has met much resistance in the latter company’s home country of Kenya.

The Kenyan High Court suspended the government’s planned sale of its stake on 18 May 2026, citing concerns around constitutionality and data sovereignty.

A conservatory order was issued following the receipt of three separate petitions from Kenyan citizens opposing the deal, preventing all participants from proceeding with the sale.

These petitioners argued that the deal was undervalued, despite Safaricom’s shares at the time trading lower on the Nairobi Stock Exchange than what was offered to acquire them.

They also argued that the deal was unconstitutional, and said the Kenyan government had sought to transfer a strategic public asset without following proper public participation processes.

A three-judge panel appointed by Kenyan Chief Justice Martha Karambu Koome ruled that the deal had raised significant concerns regarding public interest and constitutionality.

“Court process is not a mere inconvenience, and the proposed sale isn’t immune from judicial review and supremacy of the Constitution,” the court said at the time.

“Fear of investor confidence in the Kenyan economy, as raised by the respondents, shouldn’t pave the way for Constitutional insubordination.”

On 26 June, the Kenyan Court of Appeal moved to stay the conservatory order, allowing the transaction to go ahead as planned.

Petitioners in Kenya have continued to oppose the deal, arguing that a secondary initial public offering would have been ideal over divestiture to a foreign shareholder.

Commenting on the transaction, Kenya’s National Treasury Cabinet Secretary John Mbadi said the deal would be a significant financial boost to Kenya’s economy.

“Today, we crystallise a portion of that extraordinary value to invest in the roads, the energy systems, the water infrastructure, and the airports that will power Kenya’s next chapter of growth,” Mbadi said.

“We do so lawfully, transparently, and with the express authority of Parliament. Safaricom’s best days are not behind it. They are ahead of it. And Kenya remains its home.”