Vodacom Group strengthens East Africa presence; completes acquisition of additional 20% stake in Safaricom

Vodacom Group Limited (JSE: VOD) today announced the completion of its acquisition of an additional 20% effective stake in Safaricom PLC, following the staying of a conservatory order by the Court of Appeal of Kenya on 26 June 2026 and the fulfilment of all remaining conditions precedent. This means that Vodacom's shareholding in Safaricom has increased to approximately 55%, allowing consolidation of one of Africa's foremost telecommunications, financial services, and technology businesses.

The transaction, valued at $2.1 billion (R35 billion), was first announced in December 2025 and sees Vodacom acquire a 15% stake from the Government of Kenya, and an effective further 5% from Vodafone Group Plc, at KES34 per share. The Government of Kenya retains a 20% stake in Safaricom, which is listed on the Nairobi Securities Exchange. In accordance with IFRS, Safaricom's financial results will transition from an associate to consolidation. Vodacom Group reported EBITDA of R63 billion at FY26 while Safaricom reported EBITDA of R29 billion.

Commenting on the milestone, Shameel Joosub, Vodacom Group CEO said: "This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa. 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. Safaricom's outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to partnering with Governments in Kenya and Ethiopia and working even closer with the Safaricom team, leveraging the learnings from their success across the Group."

Safaricom is widely regarded as one of Africa's best companies, combining social impact, telecommunications, fintech and technology services at scale. Its flagship M-Pesa platform drives high-impact financial inclusion, evidenced by 44% of revenue coming from fintech in Kenya, while its expansion into Ethiopia - where it has established a growing customer base of circa 14 million - and its suite of cloud, IoT and enterprise services positions it for continued growth.

The completion of this transaction is a key milestone in Vodacom's Vision 2030 strategy, which is centred on deepening the Group's leadership in Africa's high-growth markets and scaling its diversified digital and financial services portfolio. Vodacom now operates across a contiguous arc of high-growth African markets, from South Africa through East and Central Africa to Egypt, with Safaricom at the strategic heart of its East African presence.

Commenting on the transaction, Hon. FCPA John Mbadi, E.G.H., Cabinet Secretary, National Treasury of Kenya, said: "Twenty-five years ago, the Government of Kenya made a founding investment in a mobile telephone licence. That investment has grown into Safaricom - a company that has transformed financial inclusion across Africa, connected more than fifty million Kenyans, and contributed over one-and-a-half trillion shillings to the Exchequer. Today, we crystallise a portion of that extraordinary value to invest in the roads, the energy systems, the water infrastructure, and the airports that will power Kenya's next chapter of growth. We do so lawfully, transparently, and with the express authority of Parliament. Safaricom's best days are not behind it. They are ahead of it. And Kenya remains its home."

Vodacom intends to update the market on its medium-term targets on or around 27 July 2026, when the Group publishes its first quarter results.