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.

The Supreme Court of Appeal recently ruled in favour of Makate, mandating Vodacom to compensate him with 5% to 7.5% of the total revenue generated by “Please Call Me” over 18 years (2001-2019), potentially amounting to R20 billion (approximately $1 billion). This figure dwarfs Vodacom’s initial offer of R47 million and significantly exceeds their previous estimates.

Recognizing the time value of money, the court stipulated that the final payout must factor in inflation calculated at an average rate of 5%. This ensures accurate compensation considering the service’s operation over an 18-year period.

Vodacom CEO Shameel Joosub carries the responsibility of determining the final compensation figure within 30 days of the court order. The CEO must look through the specified percentage range and inflation considerations to arrive at a definitive amount.

Despite the seemingly clear ruling, Vodacom expressed disappointment and announced its intention to appeal to the Constitutional Court of South Africa. Vodacom stands by its previous claim that R47 million represents fair compensation for the “Please Call Me” concept.

While the recent judgment seems to be a significant victory for Makate, the final settlement remains shrouded in uncertainty due to Vodacom’s planned appeal. This case, already one of the longest-running legal battles in South Africa, is likely to continue for some time, extending the issues surrounding the popular messaging service.

The exact revenue generated by “Please Call Me” during the specified timeframe remains confidential, making it difficult to predict the final payout with exactitude. This lack of transparency adds another layer of complexity to the already tough legal conflict.

This case is beyond just financial remuneration. It raises questions about intellectual property rights, particularly within the employee-employer context. The final outcome will hold major implications for similar situations in South Africa and potentially establish a standard for future cases involving employee-generated ideas.