Safaricom stock: Vodacom expects R23.2bn gain after stake increase

Vodacom expects to report a 23.2 billion South African rand fair-value gain after increasing its effective stake in Safaricom Kenya to 55 percent, according to MyBroadband on Wednesday, October 28, 2026. The gain comes from remeasuring Vodacom's previously held associate interest and is expected to lift reported earnings per share for the six months ended September 30, 2026.

Vodacom said the accounting gain will not affect headline earnings or headline earnings per share. It expects headline earnings per share to rise in the interim period, with results due on or about November 10, 2026.

Ownership dispute remains unresolved

Vodacom completed the purchase of an additional effective 20 percent interest in Safaricom on June 30, 2026. The transaction included a 15 percent stake acquired from the Kenyan government and a further 5 percent obtained from Vodafone, lifting Vodacom's holding from about 35 percent to 55 percent.

The ownership position remains subject to a Kenyan court dispute. The High Court had declared the government sale invalid, while the Court of Appeal later ordered that the existing position be maintained as it fast-tracked the substantive appeal. Vodacom remains the registered holder of the disputed shares while the case proceeds, according to the company statement reproduced by MyBroadband.

Competition puts M-Pesa in focus

Safaricom operates mobile voice, data, fixed internet and financial services in Kenya, with M-Pesa at the centre of its payments business. Business Daily reported that M-Pesa held an 88.8 percent share of Kenyan mobile money subscriptions in June 2026, compared with 11.1 percent for Airtel Money, making Airtel Money the clearest named competitor in the market. Safaricom's position is larger and more established, while Airtel is using lower fees and expanded distribution to narrow the gap.

Safaricom's M-Pesa revenue in Kenya rose 13.4 percent to KES 182.7 billion in the financial year ended March 2026, while mobile data and fixed internet also grew, Business Daily reported. The figures underline why pricing and ownership developments remain relevant for investors ahead of Vodacom's interim results.

The broader market environment can be followed in the current market reports.

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