Vodacom takes majority control of Safaricom

Vodacom Group has completed its acquisition of an additional effective 20% stake in Safaricom, lifting its holding to about 55% and giving the South African group majority control of Kenya's largest company.

The deal closed on June 30, 2026, after Kenya's Court of Appeal stayed a conservatory order on June 26 that had been blocking it, and once the remaining conditions were met.

The transaction is worth about 2.1 billion US dollars, or roughly 272 billion shillings. It was first announced in December 2025 and was structured in two parts: Vodacom bought a 15% stake from the Government of Kenya for 204 billion shillings, and acquired an effective further 5% from Vodafone Group for 68 billion shillings.

The Government of Kenya keeps a 20% stake, and Safaricom remains listed on the Nairobi Securities Exchange. The rest of the shares remain in public hands.

The change that matters most is quieter than the headline. Under international accounting rules, Safaricom moves from being an associate in Vodacom's books to a fully consolidated subsidiary. In plain terms, Kenya's most valuable company is now counted inside a South African group.

To see why this is a big deal, look at what Safaricom is. Its M-Pesa platform is the backbone of everyday money in Kenya, and fintech now drives about 44% of the company's Kenyan revenue. Vodacom says Safaricom has connected more than fifty million Kenyans and is expanding into Ethiopia, where it has about fourteen million customers.

The government's case for selling is that it is unlocking value from a long-term investment. National Treasury Cabinet Secretary John Mbadi framed the proceeds as money for roads, energy, water, and airports, and stressed that Kenya remains Safaricom's home.

Not everyone agreed the sale should go ahead. The deal was challenged in court by activists who argued that Safaricom is a strategic national asset, that the process needed more transparency, and that the shares were undervalued. The Court of Appeal lifted the blocking order, allowing completion while the wider case continues.

So what changes for you? For now, very little on the surface. M-Pesa still works the same way, and Safaricom's services carry on as before. The real questions are strategic: pricing, competition, investment, and the direction of a company that so much of Kenya runs on.

Vodacom says it will update the market on its medium-term targets around July 27, 2026, when it publishes first quarter results. That is when Kenyans should listen closely.