CEM REPORT, TECHNOLOGY | Safaricom PLC has successfully completed an acquisition transaction of M-PESA Holdings Co. Limited from Vodacom International Holdings BV.
The successful acquisition which was announced on Wednesday will now see Safaricom, full ownership of M-PESA, one of the most iconic mobile money platforms in Kenya and the entire East African territory. The move also marks a significant milestone in the telecommunications and mobile financial services industry.
Safaricom in its press announcement confirmed that it has duly satisfied all requirements and obtained all required regulatory approvals to assume full ownership of MPESA Holding.
Although, M-PESA was launched in 2007 by Vodacom and Safaricom, the acquisition ensures that Safaricom has complete control over the stewardship of these funds.
This announcement, according to Safaricom, complies with paragraph G.06 of the fifth schedule of the capital markets (securities) regulations of 2002 in Kenya.
M-PESA will continue to function as the corporate trustee of the M-PESA trust funds, safeguarding the interests of its customers, despite this transition,
The acquisition process was initiated on April 17th, 2023. The first stage saw Safaricom enter into a share purchase agreement with Vodafone International Holdings BV for the transfer of a hundred per cent shareholding in MPESA Holdings Limited from Vodafone BV to Safaricom.
M-PESA Holdings plays a pivotal role as the corporate trustee responsible for holding MPESA customer funds under the M-PESA trust arrangement, as mandated by the National Payment System Regulations of 2014.
Safaricom PLC is a listed Kenyan mobile network operator headquartered at Safaricom House in Nairobi, Kenya. It is the largest telecommunications provider in Kenya and one of the most profitable companies in the East and Central Africa region. The company offers mobile telephony, mobile money transfer, consumer electronics, e-commerce, cloud computing, data, music streaming, and fibre optic services.