Vodacom secures 55% Safaricom ownership stake

Vodacom Group has finalised the acquisition of an additional 20% effective stake in Safaricom PLC, increasing its shareholding to approximately 55% and securing majority ownership of the telecommunications, financial services and technology company

The transaction was completed after the Court of Appeal of Kenya stayed a conservatory order on 26 June 2026 and all remaining conditions precedent were satisfied.

Originally announced in December 2025, the transaction is valued at US$2.1bn (R35bn). Under the agreement, Vodacom acquired a 15% stake from the Government of Kenya and an effective additional 5% stake from Vodafone Group Plc at KES34 per share.

Following the completion of the transaction, the Government of Kenya retains a 20% shareholding in Safaricom, which continues to be listed on the Nairobi Securities Exchange.

As a result of the increased ownership, Safaricom's financial results will be consolidated into Vodacom's financial statements under IFRS rather than being reported as an associate. Vodacom reported EBITDA of R63bn for FY26, while Safaricom reported EBITDA of R29bn.

Majority ownership supports Vision 2030 strategy

Shameel Joosub, Vodacom Group CEO, said, "This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa. 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's outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to partnering with Governments in Kenya and Ethiopia and working even closer with the Safaricom team, leveraging the learnings from their success across the Group."

Safaricom is recognised as one of Africa's leading companies, with operations spanning telecommunications, financial technology, technology services and social impact initiatives. Its M-Pesa platform continues to play a significant role in advancing financial inclusion, with fintech contributing 44% of revenue in Kenya.

The company has also expanded into Ethiopia, where it has built a customer base of approximately 14 million, while continuing to grow its cloud, Internet of Things (IoT) and enterprise service offerings.

Transaction strengthens Vodacom's East African footprint

According to Vodacom, the acquisition represents an important milestone in its Vision 2030 strategy, which focuses on strengthening its leadership across Africa's high-growth markets while expanding its portfolio of digital and financial services.

With the transaction complete, Vodacom's operations now extend across a connected footprint stretching from South Africa through East and Central Africa to Egypt, with Safaricom serving as the centre of its East African business.

FCPA John Mbadi, E.G.H., cabinet secretary, National Treasury of Kenya, said, "Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence. That investment has grown into Safaricom - a company that has transformed financial inclusion across Africa, connected more than fifty million Kenyans, and contributed over one-and-a-half trillion shillings to the Exchequer. 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. We do so lawfully, transparently, and with the express authority of Parliament. Safaricom's best days are not behind it. They are ahead of it. And Kenya remains its home."

Vodacom intends to update the market on its medium-term targets on or around 27 July 2026, when the Group publishes its first quarter results.