Vodafone Group’s African subsidiary, Vodacom Group, has announced an agreement to acquire an effective 20 percent stake in Safaricom, Kenya’s largest telecom operator. The move strengthens Vodacom’s position in Africa and gives both Vodacom and Vodafone a controlling interest in one of the continent’s most successful telecom and fintech companies.
Under the transaction, Vodacom will acquire 15 percent of Safaricom from the Government of Kenya for €1.36 billion (KES 204 billion), and an additional 5 percent from Vodafone for €0.45 billion (KES 68 billion). The combined transaction value is US$2.1 billion (R36 billion), equivalent to KES 34 per Safaricom share.
After completion, Safaricom will be owned by Vodacom (55 percent), the Government of Kenya (20 percent), and public investors (25 percent). The company will be consolidated into both Vodacom and Vodafone.
Strategic Rationale
The acquisition strengthens the long-standing partnership between Vodafone, Vodacom, and Safaricom. It also provides an opportunity for Vodacom and Vodafone to secure controlling ownership in a business with strong telecom and financial services performance.
Safaricom, listed on the Nairobi Securities Exchange, has a market capitalization of approximately €7.7 billion and is the market leader in Kenya with a 65 percent customer market share. The operator serves more than 62 million customers and delivers integrated mobile and fixed voice, data, SMS, internet, and M-Pesa financial services.
M-Pesa remains a core growth driver, processing more than 100 million daily transactions and serving 38 million customers in Kenya. Safaricom is also growing its regional presence through Safaricom Ethiopia, which has already crossed 11 million customers.
The company reported strong financials for the six months ending September 2025, with Kenya service revenue rising 9.3 percent and robust margins including an EBITDA margin of 57.3 percent. Safaricom continues to deliver exceptional free cash flow and a return on capital employed exceeding 50 percent.
Vodafone Group CEO Margherita Della Valle said the deal aligns with Vodafone’s growth strategy.
“This is an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market.”
Vodacom CEO said: “Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while unlocking new opportunities to drive digital and financial inclusion in Kenya and Ethiopia.”
Safaricom CEO said: “Vodacom’s long-term commitment underscores the strength of our business, our people, and our future opportunities.”
Ownership Structure and Funding
Vodafone Kenya, currently 87.5 percent owned by Vodacom, holds a 39.9 percent stake in Safaricom. Upon completion of the acquisition, Vodafone Kenya will become a wholly owned Vodacom subsidiary, holding 54.9 percent of Safaricom.
The acquisition will be funded through new term facilities arranged with Vodafone, while the dividend rights payment to the Government of Kenya will be financed via an externally sourced Kenya shilling facility guaranteed by Vodacom.
Safaricom’s net asset value stands at KES 224 billion, with attributable profits of KES 45.8 billion.
Closing Timeline
The transaction is subject to regulatory approvals in Kenya, South Africa, and Ethiopia. Completion is expected in the first quarter of 2026.
Vodacom expects the deal to enhance its geographic scale, deepen fintech leadership, simplify group structure, and accelerate its regional growth ambitions.
Baburajan Kizhakedath
