Under the agreement, Vodacom will acquire 15% of Safaricom PLC from the Government of Kenya, alongside an additional 5% from Vodafone, at a price of KES34 per share.

The combined acquisition is valued at R36 billion, equivalent to approximately $2.1 billion.

Subject to regulatory and governmental approvals across Kenya, Ethiopia, and South Africa, Vodacom’s stake in Safaricom, listed on the Nairobi Stock Exchange, will rise from 35% to 55%, giving the Group a controlling interest in one of Africa’s most valuable telecom and fintech operators.

A Strategic Move under Vision2030

The transaction marks a key milestone in Vodacom’s Vision2030 strategy, which aims to deepen its leadership in Africa’s fastest-growing digital markets and expand its diversified services portfolio.

Following the deal, Safaricom’s financial results will shift from “associate” status to full consolidation under International Financial Reporting Standards (IFRS), pushing Vodacom Group’s annual revenue closer to R220 billion, or approximately $12.8 billion.

Shameel Joosub, Vodacom Group CEO, described the acquisition as transformative, noting:

“This landmark transaction accelerates growth and deepens our impact across Africa. Acquiring a controlling stake in Safaricom strengthens our position as a market leader and opens new opportunities to drive digital and financial inclusion in Kenya and Ethiopia.”

He added that Safaricom’s strong performance, innovative culture, and growth outlook align perfectly with Vodacom’s long-term ambitions.

Safaricom Welcomes Increased Investment

Peter Ndegwa, Safaricom CEO, welcomed the development, emphasizing the strength and potential of the partnership.

“Vodacom has been a trusted partner from the beginning. Their renewed commitment is a testament to our strategy, our people, and the opportunities ahead. We look forward to deepening collaboration as we scale innovation and deliver transformative services to our customers.”

Safaricom remains one of Africa’s top-performing digital companies, combining telecoms, fintech, and enterprise technology. Its flagship mobile money platform, M-Pesa, continues to drive strong fintech revenues, with expansion opportunities in Ethiopia and growing cloud, IoT, and enterprise adoption positioning the company for sustained growth.

Kenya Government Praises Transaction

Speaking on behalf of the Kenyan Government, John Mbadi, Cabinet Secretary for National Treasury and Economic Planning, noted the national significance of the deal:

“This transaction aligns with the President’s agenda of unlocking capital without raising taxes or increasing public debt, enabling investments in critical infrastructure. Safaricom remains a strategic asset, and we will retain a 20% stake as well as board representation.”

A Boost to Vodacom’s Africa Ambitions

The acquisition reflects Vodacom Group’s vision of scaling its African footprint, strengthening customer momentum, and driving sustainable value creation.

With the enhanced Safaricom stake, Vodacom seeks to advance its mission of connecting people to a better digital future across the continent.

Ndegwa, who stepped into the CEO role in April 2022, has been steadily building his stake since holding just 895,000 shares in 2021. 

At Safaricom’s closing price of KES 25.70 per share on Monday, his total shares are worth approximately KES 223.6 million ($1.73 million).

Some of this growth came through direct purchases, but a significant portion resulted from the company’s Employee Performance Share Award Plan (EPSAP), an incentive scheme designed to tie executive performance directly to shareholder returns.

In the 2025 financial year, Ndegwa received KES 45 million ($349,955) worth of shares as part of his total pay package of KES 294.2 million ($2.2 million), securing his place as the highest-paid executive on the Nairobi Securities Exchange (NSE).

Safaricom’s EPSAP works by the company buying shares on the open market and allocating them to key staff at no cost, subject to a three-year holding period. Once vested, employees can either retain or sell them.

The strategy aims to align employee goals with corporate objectives and discourage talent loss to competitors.

It’s not just Ndegwa benefiting, as Safaricom’s Chief Financial Officer, Dilip Pal, increased his own holding by 65% in the same period, now controlling 2.2 million shares valued at KES 56.5 million ($436,787). His investment shows similar faith in the company’s future.

These executive rewards follow a turnaround in Safaricom’s financials. The company posted an 11% rise in net profit to KES 69.8 billion ($540 million) for the year ended March 2025, a recovery after two years of flat growth blamed largely on heavy spending in Ethiopia.

Growth was fuelled by a surge in mobile money and data services, alongside narrowing losses in Ethiopia.

“Safaricom Ethiopia hit 10 million active customers by July 2025,” the company disclosed, reporting 270% revenue growth to 7.2 billion birr, tripling its mobile money transactions through M-PESA Ethiopia. The firm also rolled out 3,141 active sites, covering 50% of the Ethiopian population with 4G services and creating over 20,000 indirect jobs.

The bigger picture for Safaricom is equally strong. Total revenues surpassed $3 billion for the first time, with KES 388.7 billion reported for FY2025. M-PESA accounted for KES 139.9 billion, or 36% of total service revenues. Data usage across both Kenya and Ethiopia also spiked significantly.

While Safaricom’s expansion into Ethiopia initially dragged down profits, management has stayed assured. The latest results appear to justify that.

Kenyan media outlets sometimes struggle to balance editorial independence with financial stability—a challenge seen in the recent tensions between Safaricom and NMG.

NMG-owned outlets, including the Daily Nation, Business Daily, and The East African, published articles scrutinising Safaricom’s activities. 

One report highlighted an $800 million healthcare contract awarded to a consortium involving Safaricom and companies linked to Indian billionaire Gautam Adani. 

Another article revealed close associations between Safaricom’s chairman, Adil Khawaja, President William Ruto, and Adani, leading to issues over possible conflicts of interest.

The tipping point for Safaricom’s advertising suspension was reportedly an investigative piece by the Daily Nation, published on 29 October 2024, which alleged that the telecom operator shared customer data—including call, text, and location details—without obtaining adequate consent from users. 

Safaricom denied these allegations but took steps to counteract the report’s implications. Approximately a week after the article was released, Safaricom ran ads in rival publications, The Standard and The Star, to affirm its focus on customer privacy as part of its 24th-anniversary campaign.

Adding further weight to its stance, Safaricom chose not to publish its half-year 2024 financial report in any NMG publications—a decision unprecedented since the company’s public listing in 2008. 

Instead, it placed its financial disclosures in alternative media outlets, meeting legal publication requirements while sending a clear signal of its disapproval of NMG’s recent coverage.

This incident has intensified discussions on the challenges facing independent journalism in Kenya. Local news organisations are under pressure as corporate advertisers and government entities reduce their ad spending, making them vulnerable to financial limitations. 

For NMG, the loss of Safaricom’s advertising budget—estimated at $4.8 million monthly—comes as a serious blow during a period when it is already struggling with declining revenues and adapting to the evolving demands of digital media.

Sources close to the situation report that this is not Safaricom’s first instance of withholding advertising following adverse press coverage. 

However, in previous cases, the company had continued to place essential financial announcements with NMG outlets. Safaricom’s recent decision to fully withdraw ads brings an escalation in its response to unfavourable reporting.

In October, Safaricom representatives reportedly visited several newsrooms to appeal for more moderated coverage. According to a senior PR executive who requested anonymity, Safaricom officials met with editors and journalists, seeking to influence how the company’s activities were portrayed. 

Though such actions are often not disclosed publicly, the telecom operator has long been known for exercising its influence in the media industry.

Meanwhile, NMG’s challenges go beyond Kenya. Recently, in October, the Tanzania Communications Regulatory Authority suspended access to Mwananchi Communication’s websites, an NMG subsidiary, following an advertisement referencing President Samia Suluhu and recent political violence, which sparked backlash.

NMG faces its first anticipated financial loss in decades and these issues reiterate the difficult balance Kenyan media companies must scale through in maintaining editorial integrity while securing financial viability.

This initiative comes in light of the increasing competition from Starlink, the satellite internet service that has rapidly gained traction since its entry into the Kenyan market last year.

Effective immediately, Safaricom has increased the speed of its existing fibre plans. The 10 Mbps package now offers speeds of 15 Mbps for KES 3,000 (approximately $23), while the 20 Mbps plan has been elevated to 30 Mbps. 

Customers on the 40 Mbps tier will now enjoy doubled speeds of 80 Mbps, and the 100 Mbps package has seen a dramatic increase to 500 Mbps, available for KES 12,500 ($97). Notably, Safaricom has also launched a gigabit internet service, providing speeds of 1 Gbps for KES 20,000 ($155), marking a significant milestone for internet service provision in the region.

Additionally, the company has introduced a family share plan, allowing customers to bundle mobile voice, SMS, data, and home internet services for up to five family members. This plan offers discounts of up to 20% compared to purchasing services separately, built for the growing demand for comprehensive connectivity solutions.

CEO Peter Ndegwa noted the company’s focus on enhancing customer experience: “We have enhanced our Home Internet speeds to meet the increasing demand and usage, providing reliable connectivity and enhanced value for our customers.” Safaricom is also set to engage in community initiatives, including estate clinics aimed at boosting service availability in congested areas, and will explore 4G and 5G options for regions lacking fibre infrastructure.

For businesses, Safaricom has tailored dedicated internet plans, starting with a shared 15 Mbps option for smaller enterprises, scaling up to a 100 Mbps shared plan for more established businesses.

These enhancements reveal a direct response to Starlink’s market presence, which has reportedly signed up over 4,000 customers since its launch in June 2023. Starlink offers competitive speeds of up to 200 Mbps at KES 6,500 ($50) and has introduced flexible payment options, including a rental scheme for its equipment.

Safaricom recently sought regulatory intervention from the Communications Authority of Kenya (CA) to restrict the operations of foreign satellite internet providers, including Starlink. The CA has acknowledged Safaricom’s objections, which may impact the dynamics of the broadband market in Kenya as competition intensifies. 

The partnership will offer Safaricom customers Boomplay subscription bundles at discounted rates coupled with free data, ranging from a daily bundle of KES 20 with 50MB, a weekly bundle of KES 120 with 300MB and a monthly bundle of KES 299 with 1.5GB.

“As a digital-first company, we want to avail affordable devices and data bundles and leverage our extensive network coverage to enable Kenyans to enjoy a digital lifestyle. Through this partnership, our customers can now enjoy their favourite music on Boomplay using bundles that provide value and convenience,” said Peter Ndegwa, Safaricom PLC CEO.

Commenting on the partnership, Boomplay’s Managing Director for East Africa, Martha Huro, said, “With over 85 million monthly active users, we are the leading music streaming service in Africa, and we are all about building the largest and most sustainable digital music ecosystem for artistes and content providers on the continent. This partnership with Safaricom will give millions of Kenyans seamless access to entertainment anytime, anywhere.”

Customers can access the Boomplay bundles via the Safaricom App, safaricom.com or USSD *544*6# under option 5 – Boomplay and pay via airtime or M-PESA. They will then receive an SMS confirming payment and start enjoying ad-free streaming and unlimited downloads of their favourite songs and podcasts via the Boomplay app.