South African telecom company Vodacom is in discussions to expand its stake in Kenya’s Safaricom, currently at 39.93%, which could give it greater influence in East Africa’s largest telecom operator. Safaricom is valued at approximately KSh 1.19 trillion (around R157 billion).
This move follows Kenya’s consideration of splitting Safaricom into three segments: telecom services, infrastructure, and mobile money (M-Pesa). Vodacom’s increased holding could strengthen its negotiating power in any restructuring plans.
In addition, Safaricom has received approval to raise up to KSh 40 billion through a new bond programme, funding network expansion, data growth initiatives, and Ethiopia’s rollout. The bonds will be issued in smaller tranches in Kenyan shillings to mitigate foreign exchange risks and support the company’s ongoing investment cycle.
