AXIAN Telecom Holding and Management PLC has finalized the takeover of Mwananchi Group, the parent firm of Zuku. This comes after the Mauritius-headquartered company secured Ksh9.6 billion ($62.5 million) in funding to close the transaction in a deal backed by the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group.
Wananchi is a leading East African provider of pay TV, broadband, and internet services. It is best known for its flagship brands Zuku (retail broadband) and Simbanet (enterprise connectivity), and has a strong presence in Kenya and Uganda, offering home internet, pay television, and business-to-business fibre services.
AXIAN Telecom, through its subsidiary AXIAN Telecom Fibre Ltd (“Yas”), completed the purchase of 99.63% of Wananchi’s shares on Wednesday, November 5.
Following the acquisition, all employees will be under the new management, with no job cuts anticipated. Continuity of employment and business operations will be maintained, ensuring a smooth transition for employees, customers, and partners as Wananchi begins its new chapter within the Yas family.
Yas completes acquisition of Wananchi
The deal brings Zuku and Simbanet under Yas’ regional telecom portfolio, expanding its fixed internet footprint across Kenya, Uganda, Tanzania, and Malawi.
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“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,” said Hassan Jaber, CEO of AXIAN Telecom.
“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.”
Last month, IFC disclosed that the $62.5 million commitment comprises two components designed to provide AXIAN with the financial flexibility needed to complete this transformative acquisition.
IFC is set to invest $25 million from its own account as an anchor investor, while mobilizing an additional $37.5 million from partner lending institutions.
The financing forms part of a larger capital-raising effort by AXIAN Telecom. The company has announced plans to issue a substantial $550 million bond, with IFC expected to anchor a $75 million portion of that issuance.
In addition, the bond proceeds will serve multiple corporate purposes such as refinancing existing debt obligations, providing acquisition capital for the Wananchi purchase, and supporting general corporate uses, including ongoing infrastructure expansion across AXIAN’s pan-African footprint.
AXIAN Telecom
Led by Malagasy businessman Hassanein Hiridjee, AXIAN Telecom has emerged as one of Africa’s most dynamic telecommunications operators through a deliberate strategy of organic growth combined with strategic acquisitions.
The company, founded in 2003 and headquartered in Mauritius, has expanded from its initial base in Madagascar to become the continent’s sixth-largest mobile operator by subscriber count.
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It serves more than 42.9 million mobile subscribers across its footprint and has issued multiple bonds in the past five years backed by IFC, British International Investment, DEG, and Proparco.
Beyond traditional mobile voice services, AXIAN has built substantial positions in data connectivity and mobile financial services, with approximately 15.2 million users accessing mobile money and other financial products through its platforms.
The firm raised $100 million from the European Investment Bank to expand mobile broadband infrastructure (4G/5G) in Madagascar and Tanzania. Additionally, it issued a $600 million bond in 2025 to strengthen its balance sheet and invest further in connectivity across its markets.
The acquisition is expected to deliver efficiencies and strengthen AXIAN’s strategy of becoming a major telecom and digital infrastructure player across the continent, unlocking further capital from private equity investors looking to exit the Wananchi Group after more than a decade of investment.
Before the finalization of the deal, the COMESA Competition Commission had opened an inquiry into the deal and invited comments from stakeholders by October 3, 2024.
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