AXIAN Telecom on Wednesday announced it has finalized its acquisition of a 99.63% stake in Wananchi Group (Holdings) Ltd, the parent company of Kenyan consumer broadband provider Zuku and enterprise-focused Simbanet.
The deal, completed through AXIAN’s fibre optics subsidiary, AXIAN Telecom Fibre Ltd (“Yas”), marks the company’s major strategic entry into Kenya’s and Uganda’s fixed broadband markets. East Africa is one of the continent’s fastest-growing broadband regions, fuelled by rising data demand and accelerating enterprise digitalisation.
While the financial terms of the acquisition were not disclosed, the transaction was a lengthy process, taking nearly 18 months to conclude and requiring regulatory approvals, including a green light from the COMESA Competition Commission. The deal was backed by significant international financing, including a Ksh 9.6 billion ($62.5 million) commitment from the International Finance Corporation (IFC) to help fund the transaction.
The acquisition provides an exit for Wananchi’s previous investors and hands AXIAN control of a significant network that passes over one million homes across Kenya, Tanzania, Uganda, and Malawi.
Hassan Jaber, CEO of AXIAN Telecom, described the deal as a perfect strategic fit.
‘’“Wananchi Group’s network, customer relationships, and local expertise align perfectly with our ambition to be a leader in broadband connectivity across Africa. Yas already has a strong presence in East Africa, and this acquisition builds on our deep understanding of the region’s opportunities and needs while giving us access to new vibrant markets in Kenya and Uganda.’’
‘’Together, we will unlock new potential for growth, innovation, and value creation, delivering better access and new digital services for the communities and businesses we serve”. He said.
The move comes as Wananchi’s Zuku brand faces intense competition from rivals such as Safaricom Home Fibre and Poa Internet, especially in Kenya.
Under its new ownership, Wananchi is set to benefit from enhanced investment capacity and group-wide expertise from AXIAN. The new parent company also plans to scale Wananchi’s Fiber To The Home (FTTH) services, as well as its corporate SD-WAN and cloud connectivity solutions.
Bertrand Lacroix, CEO of AXIAN Telecom Fibre, said the company will focus on investment first, after which it will review a potential rebranding of the Zuku name.
“Our goal is to build a leading pan- African broadband connectivity provider, and Wananchi’s addition is a big step forward. We are committed to bringing high-speed Internet to millions more Africans. Our strong performance so far, doubling of our fixed broadband base and achieving double-digit revenue and EBITDA growth, shows the strength of our model.”
Yas already operates in Tanzania, Madagascar, Comoros, Senegal and Togo. The integration of Wananchi will leverage Yas’s operational scale, investment capacity, and cross-market expertise.
AXIAN Telecom confirmed that continuity of employment and business operations will be maintained, with no job cuts anticipated as Wananchi is integrated into the Yas family.
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