Safaricom, Kenya’s leading telecommunications provider, has successfully finalized the acquisition of M-Pesa Holding Company Limited, a unit responsible for safeguarding customer funds essential to Safaricom’s mobile money platform, M-Pesa. This transaction marks another significant milestone in Safaricom’s strategic expansion, as it seeks to enhance its control over the thriving M-Pesa service.
In an official notice released on Thursday, Safaricom’s Board of Directors announced the successful acquisition of the entire issued share capital of M-Pesa Holding Co. Limited from Vodafone International Holding BV. Safaricom’s entry into the deal dates back to April 17, 2023, when it signed a share purchase agreement with Vodafone International Holdings B.V. (Vodafone BV) to acquire a 100% shareholding in M-PESA Holding Co. Limited.
M-Pesa Holding plays a pivotal role as the corporate trustee responsible for safeguarding M-Pesa customer funds, in compliance with the National Payment System Regulations of 2014.
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This latest transaction follows Safaricom’s acquisition of the M-Pesa brand from Vodafone in 2020, a joint venture that saw Safaricom and South Africa’s Vodacom join forces. The partnership allowed Safaricom to save substantial licensing fees it used to pay to the London-based firm.
Vodafone, in its April announcement, disclosed that M-Pesa Holding had approximately Ksh196 billion in short-term investments by the end of March, alongside Ksh193 billion in customer funds. This underlines the significant financial role played by M-Pesa Holding in the administration of M-Pesa, a service that has become an essential part of Kenya’s financial landscape.
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The acquisition represents a strategic move by Safaricom to consolidate its control over M-Pesa, a platform with over 51 million active customers in Kenya. With this acquisition, Safaricom aims to strengthen its position as a key player in the country’s financial services sector, offering mobile money services to millions of Kenyans.
