Axian Telecom Finalises Acquisition of Kenya’s Wananchi Group, Reshaping East Africa’s Telecoms Sector

Axian Telecom, the Mauritius-headquartered pan-African telecoms service provider, has officially completed the acquisition of a controlling 99.63% stake in Kenya’s Wananchi Group (Holdings) Ltd., the parent company of popular Kenyan broadband and pay-television brand Zuku. The multi-billion shilling deal was facilitated by Axian’s subsidiary Yas and backed by international debt investors including the International Finance Corporation (IFC).

For Kenya’s highly competitive telecom sector, the move promises intensified rivalry, particularly in the Fibre-to-the-Home (FTTH) and pay-TV markets; both of these will give connectivity incumbents Safaricom and Airtel pressure to provide better-priced products for Kenyans, as well as potentiall offer competition for Multichoice, which was recently acquired by Canal+. Wananchi’s established brands, Zuku and enterprise connectivity arm Simbanet, will also benefit from the capital injection and technological expertise of the larger Axian group.

This could not come at a better time for Zuku, which has been facing significant headwinds since launching its ‘triple-play’ (TV, voice and data) service in 2011. Growing competition from other internet connectivity providers such as Safaricom and Airtel have seen its numbers dwindle, and TV and voice services have proved unable to retain its subscribers. This investment is expected to bolster Zuku’s existing extensive fibre network, enabling rapid expansion of core services like FTTH, potentially reversing recent market share losses.

The acquisition will transform Axian into Africa’s sixth-largest mobile and fixed operator. The Group already operates across nine African markets, leveraging its Mauritian base to coordinate its aggressive regional expansion. In Mauritius, the impact is both strategic and commercial; Axian Telecom is aggressively expanding across the rest of Africa, with its ‘Yas’ brand already a strong presence in Tanzania and Senegal, as well as partnerships with providers in countries such as Uganda, Togo, the DRC, and Madagascar.

The Wananchi Group acquisition allows Axian Telecom to establish a strong, independent brand presence in Kenya and Uganda, enhancing Axian’s scale and influence from its headquarters.

In a statement, Hassan Jaber, CEO of Axian Telecom, has highlighted the benefits of the expansion. “This acquisition builds on our deep understanding of (East Africa’s) opportunities and needs, while giving us access to new vibrant markets in Kenya and Uganda,” Jaber stated. “Together, we will unlock new potential for growth, innovation, and value creation – delivering better access and new digital services for the communities and businesses we serve.”