New era for Vodacom after R35bn takeover of Safaricom

Vodacom Group Limited has completed a R35 billion ($2.1bn) transaction to acquire control of Safaricom, taking a 55% stake after buying 15% from the Kenyan government and an effective 5% from Vodafone. The deal, first announced in December 2025, was completed on 30 June 2026 after regulatory conditions were met and a Court of Appeal stay was lifted in late June.

Deal timeline and approvals

The sale was announced in December 2025 and completed on 30 June 2026 following the Court of Appeal of Kenya’s 26 June 2026 stay of a conservatory order and the fulfilment of all conditions precedent. Regulatory approvals were obtained in Kenya, South Africa and Ethiopia. The Kenyan Parliament approved the government’s sale on 31 March 2026.

What the deal means for reporting and scale

With a 55% holding, Safaricom will move from being an associate to being consolidated in Vodacom’s financial statements under IFRS reporting standards. The transaction value was reported at R35 billion (about $2.1 billion).

The Vodacom Group reported EBITDA of R63 billion for FY26, while Safaricom reported EBITDA of R29 billion. Vodacom said majority ownership allows consolidation into a broader telecommunications, financial services and technology business that spans Southern Africa, East Africa and Egypt.

Fintech expansion and M-Pesa

Safaricom is the owner of the M-Pesa mobile money and financial services platform. BusinessTech reports that M-Pesa has expanded from Kenya into Ethiopia, adding around 14 million customers. Vodacom highlighted the platform as a key asset that strengthens its fintech footprint across the continent.

Leadership statements

“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa,” said Shameel Joosub, Vodacom Group CEO. “Acquiring majority ownership in Safaricom strengthens our position as a market leader, while at the same time unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”

“Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence,” said John Mbadi, Cabinet Secretary of the National Treasury of Kenya. “That investment has grown into Safaricom – a company that has transformed financial inclusion across Africa, connected more than fifty million Kenyans.”

Ownership and government position

Following the transactions, the Kenyan Government retains a 20% stake in Safaricom, which remains listed on the Nairobi Securities Exchange. The government said it is selling a portion of its holding to invest in infrastructure including roads, energy, water and airports.

Strategic targets and local impact

Vodacom has signalled ambitions under its Vision 2030 plan and has raised its 2030 revenue target to R300 billion. The company has said consolidation will expand its fintech footprint and is expected to result in local job and investment opportunities.

What to watch next

With Safaricom now consolidated into Vodacom, future reporting will reflect the enlarged group. Observers will watch how the combined operations integrate M-Pesa’s expanded user base and how consolidation affects investment and jobs where Vodacom operates.