Vodacom Group has announced a major step in its pan-African expansion strategy with a multibillion-dollar transaction that would significantly increase its stake in Safaricom, Kenya’s largest telecommunications operator. The move strengthens Vodacom’s commitment to the high-growth markets of Kenya and Ethiopia and marks one of the group’s most consequential investments to date.
A $2.1 Billion Transaction to Deepen East African Footprint
Under the terms of the agreement, Vodacom will acquire 15% of Safaricom PLC from the Government of Kenya and an additional 5% from Vodafone, priced at KES34 per share. The deal is valued at $2.1 billion (approximately R36 billion).
The transaction, which is subject to regulatory approvals in Kenya, Ethiopia and South Africa, will increase Vodacom’s ownership in Safaricom from 35% to a controlling 55%, while Safaricom remains listed on the Nairobi Stock Exchange.
A Boost to Vodacom’s Vision2030 Strategy
The deal forms a central pillar of Vodacom’s Vision2030 strategy, which focuses on expanding its leadership across Africa’s most promising markets and accelerating the growth of its diversified portfolio.
Once completed, the acquisition will result in Safaricom’s financial results being fully consolidated into Vodacom’s reporting in line with IFRS standards. This shift is expected to increase Vodacom Group’s revenue towards R220 billion.
Vodacom Group CEO Shameel Joosub said the transaction marks “a pivotal step” in the company’s long-term ambitions.
“This landmark transaction will mark 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, while unlocking opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”
Joosub added that Safaricom’s performance and growth trajectory align seamlessly with Vodacom’s strategic direction.
Safaricom Welcomes Strengthened Partnership
Safaricom CEO Peter Ndegwa welcomed Vodacom’s increased investment, noting that the two companies have worked closely together since Safaricom’s inception.
“Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business,”
Ndegwa said.
“Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead.”
He added that the deepened partnership will support Safaricom’s ambitions to scale innovation, expand into the region, and deliver more transformative digital and financial solutions.
Safaricom: One of Africa’s Most Valuable Digital Assets
Safaricom is widely regarded as one of the continent’s most valuable telecom and fintech operators, driven by its robust margins, resilient cash generation and innovative product ecosystem.
Its flagship mobile money service, M-Pesa, remains a dominant force in Africa’s fintech landscape, powering significant revenue growth in Kenya. Meanwhile, Safaricom’s expansion into Ethiopia and its growing portfolio of cloud, IoT, and enterprise solutions position it for sustained long-term success.
Kenyan Government: Unlocking Capital for National Development
Representing the Government of Kenya, Cabinet Secretary for the National Treasury and Economic Planning Hon. John Mbadi said the transaction aligns with President William Ruto’s agenda to unlock capital without raising taxes or increasing national debt.
“This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital … to allow additional investment in critical infrastructure to support future growth,”
Mbadi stated.
Despite the sale, the government will retain a 20% stake and board representation, underscoring Safaricom’s strategic importance to the country.
A Milestone in Vodacom’s African Growth Journey
The proposed acquisition reinforces Vodacom’s commitment to driving digital and financial inclusion across the continent and transforming its scale and market momentum into sustainable value.
If approved, the transaction will position Vodacom as a stronger regional force, deepening its presence in East Africa and accelerating its vision of connecting millions more people to a better digital future.
