Vodacom Group has completed its acquisition of an additional 20% effective stake in Safaricom, giving the South African company a 55% majority control of one of Africa’s largest telecoms, fintech and technology businesses.
- •The transaction, valued at US$2.1 billion, equivalent to about KSh 272 billion at KSh 129.50 per dollar, became effective on 30 June 2026 after all conditions precedent were fulfilled or waived.
- •Vodacom acquired a 15% stake from the Government of Kenya through a block trade on the Nairobi Securities Exchange, and an effective further 5% from Vodafone Group Plc, through Vodafone Kenya Limited, at KSh 34 per share.
- •The transaction will change Vodacom’s financial reporting, moving Safaricom from being accounted for as an associate to being consolidated in Vodacom Group’s financial statements.
The completion follows a six-month process that began in December 2025, when Vodacom announced the agreement to increase its effective interest in Safaricom. The deal was temporarily delayed by a court challenge, before the Court of Appeal of Kenya on 26 June 2026 stayed a conservatory order that had blocked the transaction. The main petition was heard on 29 June 2026.
A day before completion, Vodafone Kenya secured an exemption from the Capital Markets Authority from making a mandatory takeover offer to minority shareholders. The exemption cleared a key capital markets hurdle because the transaction increased Vodacom’s effective control of Safaricom but was treated as part of a negotiated share acquisition and internal group restructuring.
Vodacom now holds about 22.01 billion shares, or 54.94% of Safaricom. The National Treasury retains about 8.01 billion shares, equal to 20.00%, while other investors hold 10.04 billion shares, or 25.06%. Safaricom remains listed on the NSE. Vodacom reported R63 billion in EBITDA for FY26, while Safaricom reported R29 billion, underlining the scale of the asset being consolidated.
For Kenya, the sale crystallises part of the value built from the Government’s founding investment in Safaricom while preserving a 20% state stake. Treasury Cabinet Secretary John Mbadi said the proceeds would support infrastructure investment, including roads, energy, water systems and airports.
For Vodacom, the acquisition strengthens its East African position, adding majority exposure to Safaricom’s Kenyan business, M-Pesa franchise and Ethiopia expansion, where Safaricom has built a customer base of about 14 million. Vodacom said it will update the market on its medium-term targets around 27 July 2026, when it publishes its first-quarter trading update.
