Safaricom is set to acquire M-Pesa Holding Company Limited—the firm that holds hundreds of billions of shillings to operate its mobile money service—from the London-based Vodafone Group Plc.
The company, which is listed on the Nairobi Securities Exchange, will pay the British multinational—formerly its largest shareholder—a symbolic amount of $1 in the deal, pending regulatory approvals expected in the coming weeks.
The transaction, disclosed by Vodafone, has the potential to boost Safaricom’s cash flows in addition to earning the company interest income through investments in a portion of short-term securities.
“On April 17, 2023, the Group entered into an agreement to sell M-Pesa Holding Company Limited (‘MPHCL’) to Safaricom Plc, an affiliate of the Group, for USD 1 [Sh137 at current exchange rates],” Vodafone said in its results announcement for the year ended March.
“No material gain or loss is expected on disposal. Completion of this transaction is subject to various approvals, which are expected to be obtained before or during July 2023.”
M-Pesa Holding holds customer funds in trust for the benefit of M-Pesa users in Kenya.
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