The Vodacom Safaricom stake has increased to 55% following the completion of a US$2.1 billion (KSh272 billion) transaction that gives Vodacom majority control of one of Africa’s largest telecommunications and fintech companies. The acquisition strengthens Vodacom’s presence in East Africa while preserving the Kenyan government’s 20% ownership in Safaricom.

Key Overview

• Vodacom has increased its effective Safaricom stake to 55%.
• The transaction is valued at approximately KSh272 billion.
• Vodacom acquired 15% from the Government of Kenya and an additional 5% from Vodafone Group.
• Safaricom remains listed on the Nairobi Securities Exchange.
• The Kenyan government retains a 20% shareholding.
• The acquisition strengthens Vodacom’s position in Kenya and Ethiopia.
• Proceeds from the government stake sale will support national infrastructure projects.

Vodacom Safaricom Stake Rises to 55% After KSh272 Billion Deal

The Vodacom Safaricom stake has officially increased to approximately 55% following the completion of a US$2.1 billion (KSh272 billion) acquisition that gives the South African telecommunications group majority control of one of Africa’s largest telecom, fintech and technology businesses.

The transaction became effective on 30 June 2026 after all regulatory and legal conditions were either fulfilled or waived, concluding a process that began in December 2025.

The acquisition represents one of the largest corporate transactions in Kenya’s telecommunications sector and significantly reshapes Safaricom’s ownership structure while maintaining its public listing on the Nairobi Securities Exchange (NSE).

Vodacom Acquires Additional Safaricom Shares

Under the completed Vodacom Safaricom deal, Vodacom acquired:

• A 15% stake from the Government of Kenya through a block trade on the Nairobi Securities Exchange.
• An effective 5% stake from Vodafone Group Plc through Vodafone Kenya Limited.

The shares acquired from Vodafone were purchased at KSh34 per share, bringing Vodacom’s effective ownership to approximately 54.94%, equivalent to around 22.01 billion shares.

Following the transaction, the ownership structure now consists of:

• Vodacom: 54.94%
• Government of Kenya: 20.00%
• Other public investors: 25.06%

Despite the ownership changes, Safaricom continues to trade publicly on the NSE.

Court Decision Cleared the Way

The acquisition followed several months of legal proceedings.

Although the agreement was announced in December 2025, implementation was temporarily delayed after a court challenge halted the transaction.

The Court of Appeal of Kenya lifted the conservatory order on 26 June 2026, allowing the acquisition to proceed while the main petition was subsequently heard on 29 June 2026.

With the legal hurdle removed, the transaction was completed four days later.

The conclusion provides certainty for investors while allowing both companies to move forward with their long-term strategic plans.

Vodacom Strengthens Its East African Presence

The increased Safaricom ownership significantly expands Vodacom’s presence across East Africa.

Safaricom remains one of Africa’s most profitable telecommunications companies, supported by its leadership in mobile connectivity, digital financial services and the globally recognised M-PESA platform.

The acquisition also increases Vodacom’s exposure to Safaricom’s expanding Ethiopian operations, where the company has already built a customer base of approximately 14 million subscribers since entering the market.

For Vodacom, greater ownership strengthens its position within two of East Africa’s largest telecommunications markets while enhancing future growth opportunities.

Context is everything. Stay ahead of shifting trends with today’s market updates, and uncover emerging opportunities using the Serrari Group Market Index and Marketplace. Then, take control of your own financial future by exploring our Money & Life Reset Transformation Blueprint ™ to build stronger habits, create better systems, and design a path toward lasting wealth.

Government Retains Strategic Stake

Although the Government of Kenya sold part of its holding, it continues to own 20% of Safaricom.

Maintaining this significant stake allows the government to remain a major shareholder while unlocking substantial capital from the partial sale.

According to Treasury Cabinet Secretary John Mbadi, proceeds from the transaction will help finance national infrastructure projects, including:

• Road construction
• Energy infrastructure
• Water systems
• Airport development

The arrangement enables the government to realise part of the value created through its long-term investment while continuing to participate in Safaricom’s future growth.

Financial Scale Highlights Strategic Importance

The transaction brings together two of Africa’s strongest telecommunications businesses.

During the 2026 financial year:

• Vodacom reported R63 billion in EBITDA.
• Safaricom generated approximately R29 billion in EBITDA.

The combination strengthens Vodacom’s earnings base while increasing exposure to one of Africa’s fastest-growing digital financial ecosystems.

Safaricom’s continued expansion beyond traditional telecommunications into mobile money, enterprise services and digital technology further enhances the strategic value of the acquisition.

Investors Await Integration Strategy

Following completion of the acquisition, attention now turns to Vodacom’s integration plans.

The company has indicated that it expects to provide updated medium-term financial targets during its first-quarter trading update scheduled for 27 July 2026.

Investors will be closely watching how Vodacom balances greater corporate control with Safaricom’s established local brand, management structure and successful business model.

Maintaining Safaricom’s market leadership while realising operational efficiencies will likely be central to the integration strategy.

Implications for Kenya’s Telecommunications Sector

The acquisition reflects the continued attractiveness of Kenya’s telecommunications industry to international investors.

Safaricom remains the country’s dominant mobile operator and a leading provider of digital financial services through M-PESA, which continues to drive innovation in payments, savings and financial inclusion.

With increased support from Vodacom and continued backing from Vodafone Group, Safaricom may be well positioned to accelerate regional expansion, invest in next-generation technologies and strengthen its competitive position across East Africa.

At the same time, the government’s retained ownership ensures continued national participation in one of Kenya’s most strategically important companies.

Conclusion

The increase in the Vodacom Safaricom stake to approximately 55% marks a significant milestone for both companies and the wider African telecommunications sector. The KSh272 billion transaction strengthens Vodacom’s position as a leading telecommunications group while giving it greater exposure to Safaricom’s highly profitable Kenyan operations and fast-growing Ethiopian business.

With the government retaining a 20% stake and Safaricom remaining listed on the NSE, the transaction balances private investment, public participation and continued market transparency while positioning the company for its next phase of regional growth.

FAQs

1. Why did Vodacom increase its stake in Safaricom?

Vodacom increased its ownership to strengthen its long-term presence in East Africa and gain greater exposure to Safaricom’s highly profitable telecommunications and financial services business. The acquisition also provides Vodacom with majority ownership of Safaricom’s operations in Kenya and its expanding business in Ethiopia, allowing the group to consolidate earnings while supporting future regional growth across telecommunications, digital payments and technology services.

2. Does the Kenyan government still own part of Safaricom?

Yes. Following the transaction, the Government of Kenya continues to own 20% of Safaricom, making it one of the company’s largest shareholders. While it sold a 15% stake to Vodacom as part of the deal, the government retained a significant ownership position that allows it to continue participating in the company’s future growth while using proceeds from the sale to finance national infrastructure projects.

3. What does this acquisition mean for Safaricom customers?

The ownership change does not directly affect Safaricom’s day-to-day services or customer operations. Safaricom remains listed on the Nairobi Securities Exchange and continues operating under its existing brand. However, stronger integration with Vodacom could create opportunities for greater investment in network infrastructure, digital financial services, technology innovation and regional expansion that may benefit customers over the long term.

4. Why is the transaction important for Africa’s telecommunications industry?

The acquisition is one of the largest telecommunications transactions in Africa and further consolidates two of the continent’s strongest telecom businesses. By combining Vodacom’s regional operations with Safaricom’s leadership in mobile communications and M-PESA, the deal strengthens one of Africa’s largest digital ecosystems. It also highlights growing investor confidence in African telecommunications, fintech and digital infrastructure as key drivers of long-term economic growth.

Sources: Kenya Wallstreet, Daily Nation, Streamline feed, Africa Business Community, Vodafone

Your financial future isn’t something you wait for—it’s something you build.
The real question is: when do you begin?

Move beyond simply staying informed.
Navigate the markets with clarity—track trends through the Serrari Group Market Index, uncover opportunities in the Serrari Marketplace, and build practical knowledge with our Curated Wealth Builder Platform.

Stay connected to what truly matters.
Get daily insights on macro trends and financial movements across Kenya, Africa, and global markets—delivered through the Serrari Newsletter.

Growth opens doors.
Advance your career through professional programs including ACCA, HESI A2, ATI TEAS 7 , HESI EXIT  , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟—designed to move you forward with confidence.

See where money is flowing—clearly and in real time.
Track Money Market Funds, Treasury Bills, Treasury Bonds, Green Bonds, and Fixed Deposits, alongside global and African indexes, key economic indicators, and the evolving Crypto and stablecoin landscape—all within Serrari’s Market Index.