Vodacom Group Purchases Controlling Stake In Kenya’s Safaricom, Suggesting M-Pesa-Global Is A Key Cog In Its Strategy

Vodacom Group, a South Africa-based pan-African telecommunications company, has announced its purchase of a significant number of Kenya’s Safaricom PLC shares, giving it a 55% controlling stake in Kenya’s biggest telecom. The share agreement was announced in Nairobi on December 4, 2025.

Under the terms of this transaction, Vodacom will purchase 15% of Safaricom PLC from the Government of Kenya’s share in the telecom, and an additional 5% from its local subsidiary Vodafone (at USD 0.26 per share), valuing the total deal at USD 1.95 billion (SAR36 billion). Should the transaction receive the requisite approvals from regulatory and governmental authorities in Kenya, Ethiopia and South Africa, this will see Vodacom’s stake in Safaricom – which will remain listed on the Nairobi Stock Exchange – increase from 35% to 55%. Kenya’s government will continue to hold 20% of the company while public shareholders will take the rest.

The move is a key milestone in Vodacom’s Vision 2030 strategy, which includes deepening its leadership in Africa’s high-growth markets, and scaling its diversified portfolio to include financial inclusion for underserved markets. This will include M-Pesa Global, which both Vodafone and Safaricom have been expanding over the years to allow East Africans to send merchant and personal payments around the world at minimum cost and inconvenience. Should this work as envisioned, M-Pesa Global will become the jewel in the crown of Safaricom’s operations.

However, this trade hasn’t come without some resistance from Kenyans – both as shareholders and as users of the business’ services – who feel Kenya has ceded too much ground and undersold its shares which, while trading at Sh29 (from an opening position of Sh28.20 on the day of this announcement), are estimated to be valued at at least Sh40 per share, given the company’s latest strategy moves. Kenya’s President William Ruto has stated in the past that this and similar sales of government properties allow Kenya to raise home-grown investment in critical infrastructure without having to rely on debt.

Per Hon. John Mbadi, Cabinet Secretary for National Treasury and Economic Planning: “This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital without increasing taxes or the country’s debt burden, to allow additional investment in critical infrastructure to support future growth.”

Despite the home-grown controversy, this is a very strategic move for Vodacom. “This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and (deepen) our impact across Africa,” said Shameel Joosub, CEO of Vodacom Group. “Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.

“Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to working even closer with the Safaricom team and taking some of the learnings from their success and leveraging it across the Group,” he added.

Peter Ndegwa, Safaricom CEO, said: “Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business. Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead. We look forward to deepening our collaboration as we continue to scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”

Safaricom is widely regarded as one of Africa’s most attractive assets, combining telecommunications, fintech and technology services. It has consistently delivered strong financial results, with industry-leading margins and resilient cash generation. Through its flagship platform of M-Pesa in Kenya, it drives high-growth fintech revenue, while its Ethiopia operations position Safaricom for continued regional growth.