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.

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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.

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