Vodacom Completes Safaricom Stake Deal, Takes Control

Vodacom store in South Africa. PHOTO/ File

Vodacom Group has completed the acquisition of an additional 20% effective stake in Safaricom PLC, increasing its ownership in Kenya’s leading telecommunications company to approximately 55% and taking control of the business.

The South African telecommunications giant confirmed that the transaction, valued at $2.1 billion (about R35 billion and approximately Ksh 272.4 billion), has been finalised after meeting all required conditions, including regulatory and legal approvals.

Acquisition includes the purchase of a 15% stake from the Government of Kenya and an effective additional 5% stake from Vodafone Group PLC.

The deal was priced at Ksh 34 per share, strengthening Vodacom’s position as one of Africa’s largest integrated telecommunications and financial services providers.

Vodacom said the completion follows the Court of Appeal of Kenya’s decision on 26 June 2026 to stay the conservatory order that had affected the transaction, allowing the parties to fulfil the remaining conditions precedent.

“Today we have completed the acquisition of an additional 20% effective stake in Safaricom PLC, following the stay of the conservatory order by the Court of Appeal of Kenya and the fulfilment of all remaining conditions precedent,” Vodacom said.

Safaricom Becomes Consolidated Subsidiary

The completion of the transaction changes Safaricom’s accounting treatment within Vodacom Group.

The company confirmed that Safaricom will move from being an associate company to a consolidated subsidiary under International Financial Reporting Standards (IFRS).

This means Vodacom will now fully consolidate Safaricom’s financial results into its accounts, reflecting its increased control and ownership position.

Also Read:Court Blocks Govt from Selling Safaricom Shares to Vodacom

The Government of Kenya’s stake in Safaricom will reduce to 20% following the transaction.

Safaricom, which is listed on the Nairobi Securities Exchange, remains one of the country’s most valuable corporate assets and a major contributor to Kenya’s digital economy.

Vodacom Group Chief Executive Officer Shameel Joosub described the acquisition as a major milestone for the company and its expansion strategy across East Africa.

“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa. Acquiring majority ownership 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,” Joosub said.

Deal Strengthens East Africa Growth Strategy

Vodacom said Safaricom’s established telecommunications and financial technology operations align with its long-term Vision 2030 strategy, which focuses on expanding leadership in Africa’s high-growth markets.

Safaricom’s M-Pesa platform has been highlighted as a key driver of financial inclusion, with the company continuing to expand its mobile money, cloud, enterprise, and digital services businesses.

Also Read: Why Designing Financial Products for Women Is Paying Off for Safaricom

The transaction is expected to deepen cooperation between Vodacom and Safaricom, creating opportunities for expanded digital services and increased connectivity across the region.

Kenya’s National Treasury Cabinet Secretary, Hon. FCPA John Mbadi, said the government’s long-term investment in Safaricom had generated significant value for the country.

“Twenty years ago, the Government of Kenya made a founding investment in a mobile telephone licence. That investment has grown into Safaricom — a company that has transformed financial inclusion across Africa, connected more than fifty million Kenyans, and contributed over one-and-a-half trillion shillings to the Exchequer,” Mbadi said.

He added that the transaction would allow Kenya to redirect value from the investment into national development priorities while maintaining confidence in Safaricom’s future.

Vodacom said it will provide an update on its medium-term targets on or around 27 July 2026, when the group publishes its first-quarter FY27 results.

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