Vodacom Group took majority control of Kenya-based operator Safaricom, arranging to spend around $2.1 billion for a 20 per cent stake in a move which bolsters its east African presence.

South Africa-based Vodacom stated it entered into an agreement with the government of Kenya to take a 15 per cent stake in Safaricom, in addition to a 5 per cent stake from its majority owner Vodafone Group.

In total, Vodacom will pay $2.1 billion for the stake and an additional $310 million upfront to receive Safaricom dividends previously earmarked for the Kenyan government.

Vodacom’s holding in the operator will increase from around 35 per cent per cent to 55 per cent, should the transaction be cleared by regulators.

The operator explained it sees Safaricom as one of Africa’s most attractive assets, pointing to its flagship mobile money platform m-Pesa along with a range of communications and technology offerings, and a growing suite of cloud, IoT and enterprise services.

Vodacom CEO Shameel Joosub said acquiring a controlling stake in Safaricom strengthens its position as a market leader while unlocking opportunities to drive digital and financial inclusion in Kenya and Ethiopia.

He added Safaricom’s position complements the company’s Vision 2030 ambitions, a plan to deepen its leadership in Africa’s high-growth markets and scale its diversified portfolio.

John Mbadi, Kenyan Cabinet Secretary for the National Treasury and Economic Planning said the transaction is one of the first steps by President William Ruto to unlock capital without increasing taxes or its debt burden.

“Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20 per cent stake as well as board representation.”