Vodacom Group has announced a landmark transaction that will significantly increase its ownership in Safaricom, reinforcing its commitment to the fast-growing East African markets of Kenya and Ethiopia.
Under the terms of the deal, Vodacom has entered into an agreement with the Government of Kenya to acquire 15% of Safaricom PLC, along with an additional 5% from Vodafone, at KES 34 per share. The transaction is valued at US$2.1 billion (R36 billion).
Subject to regulatory and governmental approvals in Kenya, Ethiopia, and South Africa, Vodacom’s stake in Safaricom which will remain listed on the Nairobi Stock Exchange will increase from 35% to 55%.
The acquisition marks a key milestone in Vodacom’s Vision 2030 strategy, which focuses on deepening its leadership in high-growth African markets and scaling its diversified portfolio. In line with International Financial Reporting Standards (IFRS), Safaricom’s financial results will shift from being accounted for as an associate to full consolidation, raising Vodacom Group’s revenue toward R220 billion.
“This landmark transaction marks a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” said Shameel Joosub, CEO of Vodacom Group.
“Acquiring a controlling stake in Safaricom strengthens our position as a market leader while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Joosub added.
He further noted that Safaricom’s strong track record and differentiated growth outlook align perfectly with Vodacom’s Vision 2030 ambitions, enabling the Group to deliver sustainable value for stakeholders. “I look forward to working even more closely with the Safaricom team, applying lessons from their success and leveraging them across the Group.”
Safaricom CEO Peter Ndegwa welcomed the deal, saying: “Vodacom has been a trusted partner in Safaricom’s journey from the beginning, and we welcome their continued commitment and long-term investment. Their confidence in Safaricom reflects the strength of our people, our strategy, and the opportunities ahead. We look forward to deepening our collaboration as we scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
Safaricom is widely regarded as one of Africa’s most attractive assets, offering a unique blend of telecommunications, fintech, and technology services. It has consistently delivered strong financial results with industry-leading margins and resilient cash generation.
Its flagship M-Pesa platform in Kenya remains a major driver of fintech growth, while expansion in Ethiopia and the development of cloud, IoT, and enterprise services position Safaricom for continued momentum.
Speaking on behalf of the Government of Kenya, John Mbadi, Cabinet Secretary for the National Treasury and Economic Planning, said: “This transaction marks an important step in the President’s agenda to unlock capital innovatively—without raising taxes or increasing the country’s debt burden—to enable investment in critical infrastructure. Safaricom remains a key strategic asset, and we are retaining a 20% stake along with board representation.”
Overall, the transaction reinforces Vodacom Group’s vision of converting scale, customer momentum, and strategic investments into sustainable value for all stakeholders, while staying true to its purpose of connecting people for a better future.
