Safaricom telecommunication company completes buyout of M-Pesa cash holding unit for Ksh149 from the UK based from UK Vodafone Group.
Safaricom has announced the acquisition of 100 percent of M-Pesa Holding Company Limited from Vodafone Holdings B.V.
M-Pesa Holding is the corporate trustee responsible for holding the mobile banking platform’s customer funds under the M-Pesa trust arrangement.
The telco said in a public announcement on Thursday that the process of acquiring full ownership of M-Pesa Holding began in April.
Safaricom paid a token fee of about Ksh149 (USD 1) to Vodafone for the transactions to receive regulatory approval.
“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.
The unit holds customer funds in trust for Kenyan customers.
“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.
“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 2020 acquisition of the M-Pesa brand from Vodafone for Ksh2.1 billion in a joint venture between Safaricom and South Africa’s Vodacom.
Consequently, it saved the company licensing fees that it used to pay to the London-based firm.
Vodafone announced in April that M-Pesa Holding had short-term investments of Ksh196 billion by the end of March.
At the same time, it held about Ksh193 billion in customer funds.
According to Vodafone, profits from M-Pesa Holding are donated to charity.