Vodacom Group has taken a major step in strengthening its leadership in East Africa with a landmark R36 billion ($2.1 billion) transaction that will significantly increase its shareholding in Safaricom, one of Africa’s most influential telecommunications and fintech giants.
The pan-African telecoms group has reached an agreement with the Government of Kenya to acquire 15% of Safaricom PLC, along with an additional 5% purchased from Vodafone at KES34 per share. The deal, subject to regulatory approvals in Kenya, Ethiopia and South Africa, will raise Vodacom’s ownership in Safaricom from 35% to a controlling 55%, while Safaricom remains listed on the Nairobi Securities Exchange.
The acquisition marks a major milestone in Vodacom’s Vision2030 strategy, which focuses on expanding its footprint in high-growth African markets and scaling a diversified portfolio across digital, telecoms, financial services, IoT, and enterprise solutions. With Safaricom moving from an associate to a fully consolidated subsidiary under IFRS reporting standards, Vodacom’s Group revenue is projected to rise towards R220 billion.
Vodacom Group CEO Shameel Joosub described the deal as transformative for the company’s continental ambitions.
“This landmark transaction marks a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” Joosub said. “Acquiring a controlling stake in Safaricom strengthens our position as a market leader and unlocks opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia. Safaricom’s track record and differentiated growth outlook complement our Vision2030 ambitions.”
Safaricom CEO Peter Ndegwa welcomed the strengthened partnership, noting Vodacom’s long-standing role in the company’s evolution.
“Vodacom has been a trusted partner in Safaricom’s journey from the beginning,” Ndegwa said. “Their continued commitment is a testament to our people, our strategy, and the opportunities ahead. Together, we will scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
Safaricom remains one of Africa’s most valuable assets, combining mobile connectivity, fintech leadership through M-Pesa, cloud services, enterprise technology, and a fast-growing presence in Ethiopia. The company continues to deliver strong margins, resilient cash generation, and new pathways for digital transformation across the region.
Representing the Government of Kenya, Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, said the transaction aligns with Kenya’s strategy to unlock capital sustainably.
“This transaction is one of the first steps in the President’s agenda of unlocking capital without raising taxes or increasing debt, enabling further investment in critical infrastructure,” Mbadi stated. “Safaricom remains a strategic national asset, and the government will retain a 20% stake and board representation.”
The deal positions Vodacom’s commitment to building Africa’s digital future, leveraging scale, innovation, and strategic investment to connect millions and drive socio-economic growth across the continent.
