Vodacom Group Ltd., South Africa’s largest mobile operator, is preparing to acquire Safaricom Plc, East Africa’s largest telecom company, in a multibillion-dollar deal.
For a total of $2.1 billion, Vodacom has agreed to buy the Kenyan government’s 15% share in Safaricom, as well as Vodafone International Holdings BV’s effective 5% stake.
According to Bloomberg, the agreement also involves a 5.3 billion rand ($310 million) upfront payment to secure the right to future Safaricom earnings that would otherwise be sent to the Kenyan government.
Vodacom’s total ownership in Safaricom would increase to 54.9% following the acquisition, according to the business. Vodacom will fund the acquisition through loan agreements with Vodafone and an externally funded Kenyan-shilling credit guaranteed by Vodacom.
Using mobile payments strategically, the firm stated that, the acquisition will consolidate Vodacom’s capabilities in digital wallets, lending, and mobile payments, supporting its broader financial inclusion strategy across the region.
With over 60% of mobile users, Safaricom leads Kenya’s telecom sector, valued at approximately KES 1.196 trillion ($8.8 billion). Revenue for the six months ending in September increased 11.1% to KES 199.9 billion ($1.4 billion), demonstrating the company’s continued robust expansion.
The Kenyan Cabinet, National Assembly, Capital Markets Authority, Communications Authority, Central Bank, COMESA Competition Commission, and East African Community Competition Authority are among the regulatory bodies that must approve the deal.
Until all regulatory clearances are finalised, Safaricom has encouraged investors and stockholders to trade its shares with care.
This is a deliberate move by Vodacom to consolidate its mobile payment and digital wallet capabilities, utilising Safaricom’s very successful M-Pesa business in Africa. Safaricom dominates the Kenyan market and is expanding into Ethiopia.
The merger requires several regulatory clearances from Kenyan, South African, and Ethiopian agencies, notably the Kenyan Capital Markets Authority (CMA). Vodacom will ask the CMA for an exemption from making a mandated acquisition offer to Safaricom’s minority shareholders. The agreement is slated to close in the first quarter of the calendar year 2026.