Vodacom Acquires Majority Safaricom Stake

Vodacom Group Ltd. has agreed to acquire a majority stake in Safaricom Plc in a $2.1 billion deal. This transaction involves Vodacom purchasing a 15% stake from the government of Kenya and an effective 5% from Vodafone Idea International Holdings BV, increasing Vodacom's ownership from 35% to 55%. Vodacom will also make an additional upfront payment of $310 million for future dividends previously allocated to the Kenyan state. The deal, which is subject to regulatory approval in South Africa, Kenya, and Ethiopia, is a key part of Vodacom's Vision 2030 strategy to deepen its leadership in Africa's high-growth markets and scale its diversified portfolio, particularly in mobile money and digital services through Safaricom's M-Pesa platform. Safaricom Plc will remain listed on the Nairobi Stock Exchange. For Kenya, the sale helps generate revenue to address climbing debt-service costs and persistent budget gaps, while the government retains a 20% stake in Safaricom Plc.