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Court Ruling Clears Path for Landmark Acquisition
South Africa’s Vodacom Group has officially assumed majority control of Safaricom Plc following the completion of a $2.1 billion (approximately KSh 272 billion) transaction that expands its effective stake to about 55 percent.
RELATED: Vodacom to acquire 20% of Safaricom in $1.6 billion deal, becoming majority shareholder
The deal closed on June 30, 2026, immediately after Kenya’s Court of Appeal issued a decisive ruling that stayed a conservatory order which had temporarily stalled the transaction. The acquisition was first announced in December 2025.
ALSO READ: Kenya lets Safaricom sale outrun its own courts
Deal Structure and Ownership Changes
Under the agreement, Vodacom acquired a 15 percent stake from the Government of Kenya and an effective 5 percent stake from Vodafone Group at KSh 34 ($0.27) per share.
This transaction lifts Vodacom’s ownership from 35 percent to 55 percent, transforming Safaricom from an associate into a fully consolidated subsidiary in Vodacom’s financial statements.
The Kenyan government retains a 20 percent shareholding, while the remaining shares continue to trade publicly on the Nairobi Securities Exchange (NSE).
Strategic and Financial Implications
With majority control secured, Safaricom’s financial performance will now be fully consolidated under Vodacom’s IFRS reporting framework.
Vodacom reported FY26 EBITDA of R63 billion, while Safaricom posted EBITDA of R29 billion over the same period—figures that significantly strengthen Vodacom’s regional balance sheet.
Safaricom’s robust performance has been driven largely by strong growth in its M-Pesa mobile money business in Kenya and reduced losses from its Ethiopian operations.
For the year ended March 31, Safaricom increased its total dividend by 66.7 percent to KSh 2 per share after net profit surged 67.3 percent to KSh 99.7 billion ($772 million).
Leadership Perspectives
Vodacom Group Chief Executive Officer Shameel Joosub described the acquisition as a defining milestone for the company’s long-term strategy.
“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa,” Joosub said. “Majority ownership strengthens our market leadership while unlocking new opportunities to scale digital and financial inclusion in Kenya and Ethiopia.”
Kenya’s National Treasury Cabinet Secretary, John Mbadi, highlighted the historic significance of the government’s investment in Safaricom, noting that it has contributed more than KSh 1.5 trillion to the national treasury over 25 years. Proceeds from the share sale will now be channelled into Kenya’s National Infrastructure Fund to finance roads, energy, and water projects.
Regulatory Clearance and Market Impact
Ahead of completion, Vodafone Kenya secured a critical waiver from the Capital Markets Authority, exempting it from making a mandatory takeover offer to minority shareholders—a move that cleared the final regulatory hurdle.
The transaction also tightens Vodacom’s strategic grip on the M-Pesa platform, intensifying competition with regional rivals such as MTN and Airtel in Africa’s fast-growing fintech and digital payments market.
Looking Ahead
Vodacom said it will issue updated medium-term financial targets when it releases its first-quarter results on or around July 27, 2026.
The group views the Safaricom acquisition as central to its Vision 2030 strategy, anchoring a contiguous growth corridor stretching from South Africa through East Africa and into Ethiopia.
