by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – VODACOM Group has completed its US$2,1 billion (R35 billion) acquisition of an additional 20 percent effective stake in Safaricom, strengthening its position in East Africa by taking majority control of the Kenyan telecommunications giant.
The transaction follows the Court of Appeal of Kenya’s decision to stay a conservatory order on 26 June and the fulfilment of all remaining conditions precedent, enabling Vodacom to increase its shareholding in Safaricom to about 55 percent.
Initially announced in December 2025, the deal includes the acquisition of a 15 percent stake from the Government of Kenya and an effective additional five percent stake from Vodafone Group at KES34 per share.
The Kenyan government retains a 20 percent shareholding in Safaricom, which remains listed on the Nairobi Securities Exchange.
The acquisition means Safaricom’s financial results will now be consolidated into Vodacom’s accounts rather than being treated as an associate.
Vodacom reported earnings before interest, tax, depreciation and amortisation (EBITDA) of R63 billion for the 2026 financial year, while Safaricom posted EBITDA of R29 billion.
Vodacom Group Chief Executive Officer Shameel Joosub described the acquisition as a landmark for both companies and the region.
“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa,” Joosub said.
He said majority ownership would strengthen Vodacom’s market leadership while creating opportunities to accelerate digital and financial inclusion in Kenya and Ethiopia.
Safaricom, renowned for its M-Pesa mobile money platform, derives 44 percent of its Kenyan revenue from financial technology services and has expanded into Ethiopia, where it has built a customer base of about 14 million subscribers.
Kenya’s Cabinet Secretary for the National Treasury, John Mbadi, said the transaction would unlock funding for strategic infrastructure projects while ensuring Safaricom remained rooted in Kenya.
Vodacom is expected to update investors on its medium-term targets when it publishes its first-quarter results on 27 July.
– CAJ News