South Africa’s Vodacom takes control of Kenya’s Safaricom with stake worth $2.1 billion

South African telecommunications group Vodacom has completed the acquisition of an additional 20 percent stake in Kenya’s Safaricom, increasing its ownership to 55 percent and giving it majority control of the Nairobi Securities Exchange-listed operator.

The transaction closed days after Kenya’s Court of Appeal lifted orders that had blocked the government’s sale of its stake, clearing the way for the deal first announced in December. Based on Safaricom’s market capitalization at the time of publication, the newly acquired stake is worth about KSh272 billion ($2.1 billion).

Vodacom secures East African market leadership

The completion comes three days after the Court of Appeal approved the transaction, allowing Kenya’s National Treasury to receive KSh204.3 billion ($1.57 billion) from the sale of its 15 percent stake in Safaricom.

As part of the agreement, the Treasury will also receive a KSh40.2 billion ($310 million) dividend top-up, structured as a loan backed by the government’s remaining 20 percent holding in the telecommunications company.

“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa. Acquiring majority ownership in Safaricom strengthens our position as a market leader, while at the same time unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Vodacom Group CEO Shameel Joosub said.

The acquisition strengthens Vodacom’s position in East Africa through one of the region’s largest telecommunications operators. Safaricom serves more than 42 million subscribers and holds a dominant position in mobile money through its M-Pesa platform.

Vodacom’s African expansion moves forward seamlessly

Vodacom, which provides communications and financial services to more than 220 million customers across Africa, has been expanding its digital financial services and data offerings as competition across the continent intensifies.

The deal had faced legal hurdles earlier this year. In May, Kenya’s High Court suspended the government’s planned sale of a 15 percent stake in Safaricom to Vodacom after petitions challenged the transaction on constitutional grounds, raising concerns over public participation and data governance.

A three-judge bench issued conservatory orders halting the sale, which had been valued at KSh31.47 billion ($1.9 billion), pending further review. The Court of Appeal’s decision has now removed those restrictions, allowing the transaction to proceed to completion.