In a move that solidifies its footprint across East Africa, Vodacom Group Limited (JSE: VOD) has officially completed its acquisition of an additional 20% effective stake in Safaricom PLC.
The African telecommunications landscape has shifted dramatically following a monumental regulatory and financial breakthrough. In a move that solidifies its footprint across East Africa, Vodacom Group Limited (JSE: VOD) has officially completed its acquisition of an additional 20% effective stake in Safaricom PLC.
As detailed in the official announcement on the Vodacom Group Media Centre, the $2.1 billion (R35 billion) transaction elevates Vodacom’s total shareholding in Safaricom to approximately 55%. This majority ownership allows Vodacom to fully consolidate Safaricom one of the continent’s most successful and innovative telecommunications, financial services and technology enterprises into its financial reporting.
First announced in December 2025, the deal reached its final milestone after the Court of Appeal of Kenya stayed a conservatory order that had temporarily paused the transaction. With all remaining conditions precedent successfully fulfilled, Vodacom finalized the purchase at KES 34 per share.
The acquisition structure involves Vodacom acquiring a 15% stake directly from the Government of Kenya alongside an effective 5% from Vodafone Group Plc. Following the sale, the Government of Kenya retains a strategic 20% stake in the Nairobi Securities Exchange-listed company.
For Vodacom, this acquisition is a crown jewel in its long-term Vision 2030 strategy, which aims to deepen leadership in high-growth African markets and aggressively scale its digital and financial services portfolios. Vodacom now manages a massive contiguous network of high-growth markets stretching from South Africa through Central and East Africa all the way to Egypt.
“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa,” said Shameel Joosub, Vodacom Group CEO. “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.”
Safaricom brings massive financial power to the Vodacom Group. At the close of FY26, Vodacom reported an EBITDA of R63 billion, while Safaricom reported an EBITDA of R29 billion. Under International Financial Reporting Standards (IFRS), transitioning Safaricom from an associate to a consolidated entity will profoundly boost Vodacom’s balance sheet and market valuation.
Safaricom’s reputation as a fintech pioneer makes it an invaluable asset. Its flagship mobile money platform M-Pesa continues to be a dominant driver of financial inclusion, accounting for a staggering 44% of the company’s revenue in Kenya.
Beyond Kenya’s borders, Safaricom’s aggressive expansion into Ethiopia has already yielded a rapidly growing customer base of roughly 14 million users. Coupled with an expanding suite of enterprise services, cloud computing, and Internet of Things (IoT) technologies, Safaricom is uniquely positioned for exponential future growth.
While the government has relinquished a portion of its equity, Kenyan officials view the transaction as a vital fiscal victory. The capital unlocked from the $2.1 billion deal will be immediately redirected into nationwide development.
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Hon. FCPA John Mbadi, E.G.H., Cabinet Secretary for the National Treasury of Kenya, emphasized the historic nature of the investment: “Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence. 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 assured citizens and investors alike that the transaction was executed transparently, lawfully, and with full parliamentary authority, adding confidently that “Safaricom’s best days are ahead of it.”
With the consolidation complete, the telecom industry is eagerly awaiting Vodacom’s next moves. The company has announced that it will update the market on its newly adjusted medium-term targets when it publishes its first-quarter results.
