Safaricom Seals M-Pesa Cash Unit Acquisition for Ksh149
Safaricom has completed the acquisition of M-Pesa Holding Company Limited from the London-based Vodafone Group. M-Pesa contains billions in customer funds that support Safaricom’s mobile money platform.
Safaricom paid approximately Ksh149 (USD 1) to Vodafone for regulatory sanction of the transactions.
“The Board of Directors of Safaricom PLC (Safaricom) 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 Holding BV,” the telco said in a notice on Thursday.
This unit maintains customer funds for Kenyan customers in trust.
“On 17th April 2023, Safaricom entered into a share purchase agreement with Vodafone International Holdings B.V. (Vodafone BV) for the transfer of one hundred percent (100%) shareholding in M-PESA Holding Co. Limited (M-PESA Holding) from Vodafone BV to Safaricom,” Safaricom announced.
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“M-Pesa Holding is the corporate trustee responsible for holding M-Pesa customer funds under the M-Pesa trust arrangement as required by the National Payment System Regulations, 2014.”
The transaction follows the Ksh2.1 billion acquisition of the M-Pesa brand from Vodafone by Safaricom and Vodacom of South Africa in 2020.
As a result, the corporation no longer had to pay licensing fees to the London-based company.
Vodafone announced in April that M-Pesa Holding had Ksh196 billion in short-term investments at the end of March.
In addition, it held approximately Ksh193 billion in client funds.
According to Vodafone, M-Pesa Holding profits are donated to charity.
Safaricom Seals M-Pesa Cash Unit Acquisition for Ksh149
