Safaricom PLC, a leading telecommunications company in Kenya, has announced the successful acquisition of M-Pesa Holdings Co. Limited. This strategic move places Safaricom in full ownership of M-Pesa, one of the most iconic mobile money platforms in Kenya and the entire East African territory.
The acquisition process was initiated on April 17th, 2023. Safaricom entered into a share purchase agreement with Vodafone International Holdings BV for the transfer of a hundred percent shareholding in M-Pesa Holdings Limited from Vodafone BV to Safaricom. The transaction hinged on meeting various conditions typical for such complex deals, including securing approval from shareholders and the necessary regulatory authorities. All conditions have been duly satisfied, and all required regulatory approvals have been obtained.
M-Pesa Holdings plays a pivotal role as the corporate trustee responsible for holding M-Pesa customer funds under the M-Pesa trust arrangement. Despite this transition, M-Pesa will continue to function as the corporate trustee of the M-Pesa trust funds, safeguarding the interests of its customers.
A Significant Milestone
This acquisition ensures that Safaricom has complete control over the stewardship of these funds. It marks a significant milestone in the telecommunications and mobile financial services industry. The successful conclusion of this momentous transaction is in compliance with paragraph G.06 of the fifth schedule of the capital markets (securities) regulations of 2002 in Kenya.
Safaricom’s acquisition of M-Pesa is a testament to its commitment to enhancing mobile financial services in Kenya and beyond. It will be interesting to see how this development shapes the future of mobile money platforms in East Africa.