In a defining move that reshapes the landscape of mobile financial services, Safaricom PLC has proudly declared its full acquisition of M-PESA Holdings Co. Limited. The deal, culminating in Safaricom’s purchase of the entirety of M-PESA Holdings from Vodacom International Holdings BV, has solidified Safaricom’s position at the helm of the mobile money industry.
The journey to this acquisition started on April 17th, 2023, when Safaricom embarked on a strategic agreement with Vodafone International Holdings BV. This pivotal arrangement resulted in the complete transfer of MPESA Holdings Limited’s shareholding from Vodafone BV to Safaricom.
M-PESA, which has grown to become an emblem of mobile money prowess not just in Kenya but across East Africa, now nestles under Safaricom’s wing. This acquisition is more than just a corporate maneuver; it’s about stewardship. M-PESA Holdings, as outlined by the National Payment System Regulations of 2014, has the critical mandate of holding and managing M-PESA customer funds within a trust. With this acquisition, Safaricom takes on the mantle of ensuring these funds are stewarded with the utmost care and integrity.
For a transaction of this magnitude, various conditions and prerequisites had to be met. This included garnering approval from an array of stakeholders, from shareholders to regulatory authorities. Safaricom’s announcement comes after successfully navigating this intricate maze of requirements, ensuring all stipulations were adhered to, and all necessary permissions secured.
Safaricom’s disclosure of this acquisition aligns with the capital markets (securities) regulations of 2002 in Kenya. It stands as a testament to the company’s commitment to transparency and compliance.
While this acquisition heralds a new chapter for Safaricom and M-PESA Holdings, customers can rest assured that the core ethos of M-PESA remains intact. The platform will persist in its role as the corporate trustee for M-PESA trust funds, prioritizing the safety and security of its user’s assets.
