Vodacom acquires majority stake in Kenya's Safaricom for R35.77bn

Acquisition gives Vodacom control over its biggest African market with 62 million customers

- EDWARD WEST

VODACOM Group CEO Shameel Joosub and Government of Kenya National Treasury Cabinet Secretary John Mbadi during the National Treasury Market Updates and memorandum of understanding (MOU) Signing Ceremony at the JW Marriott Hotel in Nairobi.

VODACOM Group will spend about R35.77 billion ($2.1bn) to acquire a further 20% stake in Safaricom, bringing its stake to 55%, as the Kenya government moves to raise additional capital instead of raising taxes or debt.

The South African telecoms group said Thursday it will acquire 15% of the shareholding from the government of Kenya and 5% from Vodacom's parent, the UK-based Vodafone group. The deal gives Vodacom control over its biggest African market - Safaricom holds about 62 million customers, more than the 46.1 million customers Vodacom holds in South Africa, and roughly the same size of the group's 51 million customers in Egypt.

The deal attracted widespread comment on social media. On "X", Lawrence Kitema (@Lawrencekitema) said it would result in the Kenya government immediately benefiting from a $1.89bn inflow and "this landmark transaction provides Kenya with fiscal breathing room amid debt-repayment pressures and tight budget conditions, while retaining a 20% ownership in East Africa's most profitable company ... '