Vodacom Group (JSE:VOD) has agreed a KES34-per-share transaction to lift its stake in Safaricom (NSE:SCOM) from 35% to 55%, deepening its presence in Kenya and Ethiopia under its Vision2030 strategy. The deal is valued at $2.1bn (equivalent to ZAR36bn in Vodacom’s reporting) and includes acquiring 15% from the Government of Kenya and a further 5% from Vodafone.

The South Africa-based operator said the agreement is subject to regulatory approvals in Kenya, Ethiopia and South Africa. Safaricom, Kenya’s largest mobile operator and a leading regional fintech provider through M-Pesa, will remain listed on the Nairobi Securities Exchange.

Vodacom said the stake increase would shift Safaricom’s results from associate accounting to full consolidation under IFRS, potentially lifting Vodacom Group revenue to ZAR220bn ($11.9bn). Executives said the deal aligns with plans to scale operations in high-growth African markets.

“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepens our impact across Africa,” Vodacom CEO Shameel Joosub said. “Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”

Safaricom CEO Peter Ndegwa welcomed Vodacom’s increased involvement, saying the move demonstrated confidence in Safaricom’s strategy and outlook. He said deeper collaboration would support expansion across digital and financial services.

Kenya’s National Treasury — which will retain a 20% stake and board representation — said the sale forms part of President William Ruto’s plan to mobilise capital “without increasing taxes or the country’s debt burden.” Cabinet Secretary John Mbadi said proceeds would support infrastructure investment.

Vodacom said the acquisition underscores its ambition to convert scale and strategic investments into long-term value. Safaricom, regarded as one of Africa’s strongest telecoms-fintech assets, continues to post robust margins and cash generation, supported by enterprise, cloud, IoT and fintech growth.