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Vodacom Secures Controlling Stake in Safaricom After $1.6 Billion Share Acquisition
Vodafone Group’s African subsidiary, Vodacom Group Ltd, has agreed to acquire an additional 20% stake in Safaricom Plc, Kenya’s largest telecoms operator, in a landmark transaction valued at approximately $1.6 billion.
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The move will increase Vodacom’s total shareholding in Safaricom from 35% to 55%, making it the controlling shareholder of one of Africa’s most profitable and influential digital services companies.
The acquisition consists of:
- 15% purchased from the Government of Kenya (GOK)
- 5% purchased from Vodafone
The deal marks one of East Africa’s most significant telecom sector transactions and comes at a time when Kenya is seeking new strategies to boost revenue and manage rising public debt.
Kenya to Earn $1.6 Billion as Government Sells Part of its Safaricom Stake
The Government of Kenya will receive €1.36 billion (KES 204 billion) from the sale of its 15% stake, offering the state a 23% premium on Safaricom’s current market value. Vodafone will receive €0.45 billion (KES 68 billion) for its 5% sale.
The transaction aligns with Kenya’s broader efforts to unlock capital through asset sales as the government faces:
- High public debt
- Limited fiscal headroom
- Annual debt repayments consuming 40% of national revenue
This strategy allows Kenya to raise funds without increasing taxes or expanding public borrowing.
Safaricom: A Telecom and Fintech Powerhouse
Safaricom remains Kenya’s most valuable company, listed on the Nairobi Securities Exchange with a market capitalisation of €7.7 billion. The company operates:
- A large tower and spectrum portfolio
- A majority stake in Safaricom Ethiopia, one of Africa’s fastest-growing new telecom markets
- M-Pesa, a global-leading fintech platform with:
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Over 100 million daily transactions
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38 million active customers in Kenya
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Financially, Safaricom continues its strong momentum. For the six months ending 30 September 2025, service revenue in Kenya grew 9.3%, driven by 14% growth in M-Pesa revenues.
A Strategic Move to Strengthen Vodacom and Vodafone’s African Footprint
Both Vodafone and Vodacom describe the acquisition as a key step toward gaining controlling ownership of Safaricom and deepening their influence in one of Africa’s most successful telecom and financial services ecosystems.
“This is an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market. We have partnered with Safaricom since 2000, including the co-creation of M-Pesa, which has driven financial inclusion for millions,” said Margherita Della Valle, Vodafone Group CEO.
Regulatory Approvals Needed Ahead of Early 2026 Completion
The acquisition is subject to approvals from regulators and authorities in:
- Kenya
- South Africa
- Ethiopia
The deal is expected to be completed in Q1 2026.
Once finalised, Vodacom will consolidate Safaricom’s mobile payments, digital lending, and wallet services—including M-Pesa—into its broader financial inclusion strategy across Africa.
Della Valle added that acquiring the controlling stake will accelerate Vodacom’s Vision 2030 ambitions, enabling cross-market innovation and the spread of Safaricom’s best-in-class digital financial services across the group.
Kenya Welcomes the Deal as Safaricom Deepens Regional Expansion
Kenya’s Finance Minister John Mbadi, welcomed the transaction:
“Vodacom has been a trusted partner from the beginning. Their continued investment is a testament to Safaricom’s strength, strategy, and the opportunities ahead.”
He noted that Kenya will retain a 20% stake and board representation, making Safaricom both a strategic national asset and a key source of future value.
A Key Pillar in President Ruto’s Capital Unlock Strategy
The transaction supports President William Ruto’s broader agenda to unlock capital without increasing taxes or deepening public debt., With this, government wants to ensure adequate funding for essential national infrastructure.
Vodacom also highlighted that the deal simplifies Vodafone’s ownership structure. This gives Vodacom maximum strategic flexibility while reinforcing the company’s leadership in Africa’s telecom and fintech sectors.
