Madagascar-based Axian Telecom has taken over local operator of fixed-broadband and pay-TV service provider Wananchi Group—the parent company of the Zuku brand.
The acquisition of a 99.63 per cent stake in Wananchi, marks Axians entry into Kenya’s fixed-connectivity infrastructure market, giving the pan-African telecoms and fintech firm a footprint into East Africa’s most advanced digital economy.
Last month International Finance Corporation (IFC) revealed that it is among a group of debt investors that will fund Axian Telecom’s acquisition of Kenya’s Wananchi Group.
The acquisition comes after nearly 18 months of negotiations and regulatory approvals, culminating in a final green light from the COMESA Competition Commission in December 2024.
Though the company did not disclose the transaction’s value, the deal is backed by major international financing, including a $550 million (Sh71 billion) bond issuance from the IFC, with up to $75 million (Sh9.6 billion) dedicated to it.
AXIAN Telecom Fibre CEO Bertrand Lacroix, said the acquisition will necessitate new investments in the country ahead of a review on whether they will rebrand from the Zuku brand
“It is important is to keep rolling out new fibre coverage, wherever it is needed, so in order to do that, we have very strong people in terms of geo-marketing, they know where our connection services will be the most needed,” said Lacroix.
“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.”
Under the deal, Wananchi will be integrated into a newly formed Axian subsidiary Axian Telecom Fiber — which will house all the group’s fixed connectivity operations.
Group CEO Hassan Jaber said the move was driven by the need to “accelerate the digital connectivity of homes and businesses” and to establish a strong presence in Kenya
