Safaricom made significant strides by completing the acquisition of M-Pesa Holding Company from Vodafone, a London-based group.
In a statement released by the telecommunication company, it paid a token fee of Ksh149 (USD 1) to Vodafone before receiving the regulatory approval to acquire the units that hold billions of Safaricom customer funds.
“The Board of Directors of Safaricom PLC (Safaricom) is pleased to notify the public of the completion of the acquisition by Safaricom of the entire issued share capital of M-pesa Holding Co. Limited from Vodafone International Holding BV,” the telco said in a notice on Thursday.
“On 17th April 2023, Safaricom entered into a share purchase agreement with Vodafone International Holdings B.V. (Vodafone BV) for the transfer of one hundred percent (100%) shareholding in M-PESA Holding Co. Limited (M-PESA Holding) from Vodafone BV to Safaricom,” the telco indicated.
“M-Pesa Holding is the corporate trustee responsible for holding M-Pesa customer funds under the M-Pesa trust arrangement as required by the National Payment System Regulations, 2014.”
In 2020, Safaricom acquired the M-Pesa brand from Vodafone by paying Ksh2.1 billion in a joint venture with South Africa’s Vodacom.
However, with the latest transactions, M-Pesa is now under full control of Safaricom bolstering its business matrix in the country.
The acquisition is also expected to steer expansion in other East African markets.
