Vodacom Eyes Bigger Stake in Safaricom as Kenya Explores Cash Sale
Vodacom CEO Mohamed Shameel Joosub stated that while no Safaricom breakup is currently under consideration, the company would consider acquiring additional shares if existing stakeholders decide to sell.
Vodacom Group Limited (VDMCY), South Africa’s leading telecom operator, has signaled a potential interest in increasing its stake in Kenya’s Safaricom PLC as the Kenyan government explores ways to raise cash. During its Q2 2026 earnings call on November 10, 2025, Vodacom CEO Mohamed Shameel Joosub stated that while no Safaricom breakup is currently under consideration, the company would consider acquiring additional shares if existing stakeholders decide to sell. “We look at any market where our partners want to sell. In that context, if there is a want to sell, I’m sure they’ll talk to us,” Joosub said.
Safaricom remains a key contributor to Vodacom’s bottom line. The Kenyan operator added ZAR 2.1 billion to Vodacom’s operating profit, marking a 65.3% increase year-on-year. The strong performance was driven by robust operations in Kenya, particularly from M-Pesa, which recorded 14% growth despite already operating on a large base. Safaricom’s EBITDA margins rose to 57.3%, reflecting operational efficiency and profitability.
Vodacom itself posted strong overall financial results, with group revenue reaching ZAR 81.6 billion, up 10.9%, and net profit attributable to equity holders of ZAR 9.1 billion, a 32.3% increase. The company emphasized the growing role of financial services, which now contribute 25% of its profit before tax, highlighting the strategic value of fintech offerings in markets such as Kenya.
Analysts view Vodacom’s potential interest in increasing its Safaricom stake as a strategic move to consolidate its influence in East Africa. With the Kenyan government reportedly seeking to raise cash, a reduction in state holdings could create an opportunity for Vodacom to expand its presence. Such a move could further integrate Safaricom into Vodacom’s pan-African operations, particularly in fintech and mobile financial services, while offering investors the prospect of stronger governance alignment and potential dividend benefits.
Vodacom’s earnings call also highlighted ongoing investments in fiber, LTE, and 5G across its markets, alongside initiatives to expand financial services in Kenya, Tanzania, Egypt, and South Africa. These efforts form part of Vodacom’s Vision 2030 strategy, which targets double-digit EBITDA growth and increased financial services penetration, underscoring the company’s commitment to geographic and product diversification across Africa.
