Safaricom has achieved a significant milestone with the completion of the acquisition of M-Pesa Holding Company Limited from its parent firm, Vodafone Group PLC.

This transaction, which commenced in April this year, places the popular mobile money service, M-Pesa, under the complete ownership of Safaricom.

In a statement released on Wednesday, Safaricom announced that it had secured a 100 per cent stake in M-Pesa Holding, a corporate entity that safeguards vast sums of customer deposits, solidifying M-Pesa's status as a wholly-owned subsidiary of the telecommunications giant.

M-Pesa Holding plays a crucial role as the corporate trustee responsible for overseeing the M-Pesa trust arrangement, in compliance with the National Payment System Regulations of 2014.

M-Pesa Holding operates independently as a trustee for M-Pesa customers, diligently administering the trust and managing all funds associated with the mobile money service. This development has far-reaching implications for both companies and their customer base.

Read More

  1. Safaricom's Ethiopia venture receives boost as telecom regulator slashes rates
  2. Safaricom injects Sh20 million to power up the Connected Africa Summit 2024
  3. Govt urged to reinstate stamp duty exemption for real estate investment trusts

The acquisition, initially unveiled by Vodafone in May, saw Safaricom acquiring M-Pesa Holding for a nominal fee of $1, a move set to enhance the cash flow of the publicly-traded company listed on the Nairobi Securities Exchange.

Additionally, Safaricom anticipates earning interest income through investing a portion of the substantial M-Pesa funds in short-term securities.

Safaricom's acting company secretary, Linda Wambani, conveyed the completion of the acquisition in a statement.

"The board of directors of Safaricom PLC 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 Holdings," Wambani.

"Completion of the transaction was subject to the satisfaction of conditions that are customary for transactions of this nature, including obtaining approval from shareholders and relevant regulators, all of which have been duly satisfied and all regulatory approvals obtained."

This transfer of ownership of M-Pesa Holding to Safaricom signifies the telco's extended control over critical aspects of the pioneering mobile money service.

M-Pesa, initially established in Kenya, had its intellectual property previously held by Vodafone, but this latest move marks Safaricom's comprehensive control of this vital financial platform.

As Safaricom continues to shape the future of mobile money services, customers can expect further innovations and enhanced financial opportunities under the telco's expert stewardship.

The acquisition of M-Pesa Holding is undoubtedly a significant step forward for Safaricom, reinforcing its dominant position in Kenya's dynamic telecommunications and financial sectors.