Vodacom Group, an African subsidiary of Vodafone Group Plc, announced on June 30, 2026, the completion of its acquisition of an additional 20% effective stake in Safaricom PLC. This transaction, valued at $2.1 billion (or KES 272 billion), increases Vodacom's shareholding in Safaricom from 35% to 55%, granting it majority ownership. The deal involved Vodacom acquiring a 15% stake from the Government of Kenya for KES 204 billion and an effective 5% from Vodafone Group Plc for KES 68 billion. The Government of Kenya retains a 20% stake in Safaricom, which remains listed on the Nairobi Securities Exchange.
The completion of this deal follows the Kenyan Court of Appeal’s decision on June 26, 2026, to stay a conservatory order that had temporarily halted the transaction. This acquisition allows Vodacom to fully consolidate Safaricom’s financial results, changing its status from an associate to a consolidated entity. Safaricom’s EBITDA was reported at R29 billion at FY26, contributing significantly to Vodacom Group’s reported EBITDA of R63 billion.
This strategic move strengthens Vodacom's presence in East Africa and gives it greater influence over Safaricom's strategic direction, particularly in its rapidly expanding operations in Ethiopia and the regional growth of its M-Pesa fintech platform. Safaricom, recognized for its social impact, telecommunications, fintech, and technology services, generates 44% of its revenue from fintech in Kenya and serves approximately 14 million customers in Ethiopia through its M-Pesa platform. Vodacom Group CEO Shameel Joosub hailed the acquisition as a landmark moment, emphasizing its role in driving digital and financial inclusion across Kenya and Ethiopia.
Following the acquisition, Safaricom is proposing governance changes to its shareholders, including giving Vodafone Kenya (wholly owned by Vodacom Group) the right to nominate Safaricom’s CEO and executive directors, as long as it holds over 50% of the company. These proposals, to be voted on at Safaricom’s annual general meeting on July 31, aim to align the company’s constitutional documents with Vodafone Kenya’s new position as the controlling shareholder. The Capital Markets Authority exempted Vodafone Kenya from making a mandatory takeover offer despite crossing the 50% ownership threshold.
