Vodafone Group’s African arm, Vodacom Group Ltd, announced that it will acquire an additional 20 % of Safaricom Plc’s issued share capital, giving the company a controlling 55 % stake. The €1.81 billion deal is split into €1.36 billion for 15 % purchased from the Kenyan government and €0.45 billion for 5 % bought from Vodafone itself, with an additional upfront payment of KES 40.2 billion (≈€270 million) to the government for future dividend rights.
The transaction deepens Vodafone’s presence in a high‑growth African market and unlocks synergies across its African operations. By consolidating Safaricom’s financial results, Vodafone will strengthen its M‑Pesa platform, which already accounts for 44.5 % of Safaricom’s revenue in the first half of FY 2026. The deal is expected to close in the first quarter of 2026, pending regulatory approvals in Kenya, South Africa and Ethiopia.
Financially, the full consolidation of Safaricom’s results is projected to lift Vodacom Group’s revenue and operating income significantly. Safaricom’s FY 2025 revenue rose 11.2 % to KES 388.7 billion, driven by strong mobile‑service and mobile‑data revenue, while Vodacom’s interim profit grew 32.3 % in the period ending September 30 2025. The combined entity will benefit from cost synergies, a higher margin mix, and a broader customer base that spans Kenya, Ethiopia and other African markets.
Vodacom CEO Shameel Joosub said the deal is “a pivotal step in accelerating growth and deepening our impact across Africa.” Vodafone Group CEO Margherita Della Valle added that the transaction “offers an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market.” Kenyan Cabinet Secretary John Mbadi highlighted that the sale “supports the President’s agenda to unlock capital without increasing taxes or debt,” while Safaricom CEO Peter Ndegwa welcomed the continued commitment as a testament to the company’s strategy and people.
The transaction comes at a time when Safaricom’s M‑Pesa platform is expanding into Ethiopia, where it launched Safaricom Telecommunications Ethiopia in 2022 and has attracted over 10 million customers. However, the company faces headwinds such as turbulence in the Ethiopian market and stiff competition in South Africa. The deal’s regulatory approval in Kenya is already underway, and Vodafone is preparing for approvals in South Africa and Ethiopia to ensure a smooth transition to full consolidation.
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