Vodacom takes control of Safaricom in $2.1bn deal with Kenyan government, Vodafone

Vodacom Group Ltd. is set to take control of Safaricom Plc after striking a $2.1 billion deal to acquire additional shares from the Kenyan government and Vodafone International Holdings BV, a move that deepens its bet on East Africa’s most profitable telecom market.

In a stock-exchange filing, the South African operator said it will buy a 15% stake held by Nairobi and an effective 5% from Vodafone. Vodacom will also make a separate upfront payment of 5.3 billion rand ($310 million) for the right to receive future dividends previously allotted to the Kenyan state.

The purchases will lift Vodacom’s ownership of Safaricom — long the region’s most valuable listed company — from 39.93% to 54.9%. According to Bloomberg, two people familiar with the talks said Vodacom has explored raising its stake even further, though no final decision has been reached.

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Vodacom is financing the deal through loans from Vodafone and a Kenyan shilling facility backed by the group.

The company said the acquisition strengthens its hand in mobile money, digital lending and digital wallets, areas Safaricom dominates through its M-Pesa platform. Vodacom said the expanded control fits into its broader financial-inclusion strategy across Africa.

Safaricom, which controls nearly two-thirds of Kenya’s mobile market, is valued at 1.19 trillion shillings ($9.13 billion).

For Kenya, selling part of its holding also helps raise much-needed revenue as the government grapples with climbing debt-service costs and persistent budget gaps.

Oluwatosin Ogunjuyigbe is a writer and journalist who covers business, finance, technology, and the changing forces shaping Nigeria’s economy. He focuses on turning complex ideas into clear, compelling stories.

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