Vodacom Group has completed the purchase of an additional 20 per cent effective stake in Safaricom, increasing its ownership to 55 per cent and giving it majority control of one of Africa’s leading telecommunications, financial technology and digital services companies.
The transaction, worth US$2.1 billion, approximately KSh272 billion at an exchange rate of KSh129.50 to the dollar, officially took effect on June 30, 2026, after all regulatory and contractual requirements were met or waived.
As part of the agreement, Vodacom acquired a 15 per cent stake from the Government of Kenya through a block transaction on the Nairobi Securities Exchange (NSE) and an additional effective 5 per cent stake from Vodafone Group Plc, via Vodafone Kenya Limited, at KSh34 per share.
Following the acquisition, Safaricom will no longer be treated as an associate company in Vodacom’s financial statements. Instead, its financial results will now be fully consolidated into Vodacom Group’s accounts.
The deal concludes a process that began in December 2025 when Vodacom announced its intention to increase its holding in Safaricom. Completion was briefly delayed after a legal challenge halted the transaction, but the Court of Appeal lifted the conservatory order on June 26, 2026, allowing the acquisition to proceed ahead of the main petition, which was heard on June 29.
Before the transaction was finalised, Vodafone Kenya obtained an exemption from the Capital Markets Authority, removing the requirement to make a mandatory takeover offer to minority shareholders. The regulator determined that the acquisition formed part of a negotiated share purchase and an internal corporate restructuring despite increasing Vodacom’s effective control.
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Following completion, Vodacom owns approximately 22.01 billion Safaricom shares, representing a 54.94 per cent stake. The National Treasury remains the second-largest shareholder with about 8.01 billion shares, equivalent to 20 per cent, while other investors collectively own 10.04 billion shares, or 25.06 per cent. Safaricom will continue to trade on the Nairobi Securities Exchange.
The acquisition brings together two highly profitable businesses. Vodacom reported EBITDA of R63 billion for the 2026 financial year, while Safaricom posted R29 billion, highlighting the strategic significance of the consolidation.
For Kenya, the transaction allows the government to realise part of the value of its long-term investment in Safaricom while retaining a 20 per cent ownership stake. Treasury Cabinet Secretary John Mbadi said proceeds from the sale would be channelled towards financing key infrastructure projects, including roads, energy, water infrastructure and airports.
For Vodacom, the deal strengthens its footprint in East Africa by expanding its exposure to Safaricom’s operations in Kenya, its M-Pesa business and its growing Ethiopian venture, which has already attracted around 14 million customers. The company is expected to provide updated medium-term financial targets when it releases its first-quarter trading update on July 27, 2026.
