Vodacom Group to increase stake in Safaricom for $2.1 billion

Details: James Barton; Category: Operators; 04 December 2025; 32685 views

Vodacom Group has entered into an agreement with the Government of Kenya to acquire a 15% stake in Safaricom, as well as a further 5% from Vodafone.

The deal is valued at $2.1 billion (R36 billion), with each share valued at KES34. If the deal receives the required approvals from regulatory and governmental authorities in Ethiopia, Kenya and South Africa, it will see Vodacom’s stake in Safaricom - which will remain listed on the Nairobi Stock Exchange - increase from 35% to 55%.

If this deal is approved, it will mark a significant step forward for Vodacom’s Vision2030 strategy, which is focused on strengthening the group’s leadership in Africa’s high-growth markets and scaling its diversified portfolio. In accordance with International Financial Reporting Standards (IFRS), Safaricom’s financial results will transition from being accounted for on an associate basis to being fully consolidated, increasing Vodacom Group’s revenue towards R220 billion.

Shameel Joosub, CEO of Vodacom Group, said: “Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia. Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future.”

Safaricom has a strong track record in terms of its financial results, with high margins and resilient cash generation. Its operations across telecommunications, fintech and technology services make it a particularly attractive asset, with its flagship M-Pesa platform a major success story in Kenya that drives high-growth fintech revenue. The group has expanded into Ethiopia, and its suite of cloud, IoT and enterprise services position Safaricom for continued growth.

On behalf of the Government of Kenya, Hon. John Mbadi, Cabinet Secretary for The National Treasury and Economic Planning, said: “This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital, without increasing taxes or the countries debt burden, to allow additional investment in critical infrastructure to support future growth. Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20% stake as well as board representation.”