Vodafone Group PLC (LSE:VOD) is set to take charge of Safaricom, Kenya’s biggest telecoms group, after its African arm agreed to buy an extra 20 % stake for a combined €1.81 billion.
The move will give Vodafone and Vodacom a controlling 55 % shareholding and allow both companies to fully consolidate Safaricom’s results.
Vodacom will acquire 15% of the company from the Kenyan government for €1.36 billion and a further 5% from Vodafone for €0.45 billion.
Once the deal completes, expected in the first quarter of 2026, subject to regulatory approvals in Kenya, South Africa and Ethiopia, Safaricom will be owned by Vodacom (55%), the government (20%) and public investors (25%).
Safaricom is not only Kenya’s largest telecoms operator, but also home to M-Pesa, the mobile payments service that has become one of Africa’s most successful financial technology platforms.
M-Pesa handles more than 100 million transactions a day and has 38 million customers in Kenya alone. Safaricom also holds a majority stake in its fast-growing Ethiopian business.
In the six months to September, Safaricom’s Kenyan service revenue rose 9.3%, helped by a 14% jump in M-Pesa income. Vodafone’s chief executive, Margherita Della Valle, said the deal was “an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market”.