Axian Telecom, through its Mauritius-based subsidiary Yas, acquires a 99.63% stake in Wananchi Group (Holdings) Ltd, the parent company of Zuku and Simbanet.
Strategic Expansion into Fixed Broadband
The acquisition marks Axian Telecom’s formal entry into Kenya’s fixed-connectivity market, positioning the pan-African telecom and fintech powerhouse to scale digital services across East Africa’s most advanced digital economy.
“This transaction allows us to hit two birds with one stone entering the fixed broadband business and expanding into Kenya,” said Hassan Jaber, CEO of Axian Telecom.
Yas, now the controlling shareholder, will integrate Wananchi into a newly formed unit, Axian Telecom Fibre, focused on accelerating fibre-to-home (FTTH), SD-WAN, and cloud connectivity services.
What This Means for Zuku and Simbanet
Under Yas’s ownership, Wananchi is expected to:
- Receive substantial capital injections to expand fibre coverage
- Improve service reliability and customer experience
- Leverage Axian’s geo-marketing and investment expertise
- Address long-standing capex constraints that limited growth
“Together, we will unlock new potential for growth, innovation, and value creation,” added Jaber.
Zuku, which has faced criticism over service interruptions, is set for a turnaround with new infrastructure investments targeting underserved regions.
Regional Footprint and Market Synergy
Axian Telecom already operates in Madagascar, Comoros, Senegal, Togo, Tanzania, and Uganda. The acquisition fills a strategic gap in its portfolio, adding fixed broadband to its mobile and fintech services.
Wananchi Group’s subsidiaries span Kenya, Uganda, and Malawi and include dormant entities in Rwanda. Active brands like Zuku and Simbanet will benefit from Axian’s cross-market scale and operational muscle.
Regulatory and Financial Backing
The deal received final approval from the COMESA Competition Commission in December 2024, following an 18-month review. It is backed by international financing, including a $550 million bond issuance led by the International Finance Corporation (IFC), with up to $75 million earmarked for the Wananchi acquisition.
Legacy and Leadership
Wananchi Group was co-founded in 1999 by the late Njeri Rionge and former ICT Cabinet Secretary Joseph Mucheru. It grew from Wananchi Online into a regional leader in pay-TV, broadband, and VoIP services.
Following Rionge’s passing in October 2023, the acquisition signals a new chapter for one of Kenya’s earliest FTTH pioneers.
