en.Wedoany.com Reported - Vodacom Group, the African subsidiary of Vodafone Group, has completed the acquisition of an effective 20% stake in Kenya's Safaricom, increasing its shareholding to 55%. Following the transaction, Safaricom will be fully consolidated by Vodacom and Vodafone, giving Vodacom control over this major African telecommunications and financial services company.
The transaction was conducted in two parts. Vodacom acquired 15% of Safaricom's shares from the Kenyan government for a cash consideration of 204 billion Kenyan shillings, and simultaneously acquired 5% of shares from Vodafone for a cash consideration of 68 billion Kenyan shillings. Upon completion, Vodacom's stake in Safaricom increased from 35% to 55%, while the Kenyan government retains a 20% stake, and Safaricom continues to be listed on the Nairobi Securities Exchange. For Vodacom, this deal not only expands its equity interest in the Kenyan market but also elevates Safaricom from an associate investment to a controlled consolidated entity.
Safaricom is one of the most important telecommunications operators in East Africa and the core operating entity for the mobile financial services platform M-Pesa. Its business covers mobile communications, broadband access, mobile payments, enterprise services, and digital finance, boasting a strong user base and brand influence in the Kenyan market. With controlling stake, Vodacom can more directly integrate resources in the East African market, driving synergies in telecommunications networks, mobile finance, enterprise connectivity, data services, and regional digital business. For the Vodafone system, bringing Safaricom into a more complete consolidation scope will also enhance the weight of its African operations in the group's revenue and profit structure.
This transaction will also impact the landscape of Africa's telecommunications and fintech markets. Safaricom's value stems not only from its mobile communication users but also from the payment network, merchant ecosystem, and user transaction data built by M-Pesa over the long term. Mobile finance in the African market has an infrastructure attribute, serving not only personal transfers, bill payments, and small merchant collections but also connecting businesses such as loans, insurance, cross-border remittances, and corporate payments. Following Vodacom's control, it may continue to deepen business synergies around M-Pesa, enterprise customers, 5G networks, fixed broadband, cloud services, and cross-border payments.
The transaction has now been completed, with subsequent focus shifting to financial consolidation, business integration, compliance with local Kenyan regulatory requirements, coordination of shareholder structure, and regional business expansion. It is confirmed that Vodacom has acquired an additional effective 20% stake in Safaricom through a cash transaction, increasing its shareholding to 55%, and has obtained control over this leading Kenyan telecommunications and mobile financial services company.
