The International Finance Corporation (IFC) will anchor a $550 million bond issuance by Axian Telecom to finance the Mauritius-based operator’s planned acquisition of Kenya’s Wananchi Group, according to people familiar with the matter. IFC is expected to commit $75 million (Sh9.6 billion) to the debt, which will also refinance existing obligations and fund general corporate purposes.
Axian signed a definitive agreement in August 2024 to acquire a 99.63% stake in Wananchi Group, which operates fiber, internet, and pay-TV services across Kenya, Uganda, and Tanzania under the Zuku and Simbanet brands. The purchase price has not been disclosed.
Wananchi’s existing investors include Altice and Liberty Global, which converted debt to equity in 2022 after years of restructuring. The Nairobi-based operator raised Sh12 billion in 2014 for a regional expansion that extended to Uganda, Tanzania, Mauritius, Malawi, and Zambia—though its Rwandan unit has remained dormant.
In Kenya, Wananchi controls an estimated 15–20% of the fixed-internet market, with Zuku broadband holding roughly 12–18% share. In Uganda, it captures 10–15% of the pay-TV market, while its Simbanet brand in Malawi commands similar share levels in enterprise connectivity.
For Axian, the transaction would cement its presence in East Africa’s telecom corridor, adding a well-known consumer-facing brand to its portfolio. The company is currently ranked Africa’s sixth-largest mobile operator, serving 41 million subscribers across Tanzania, Uganda, the Democratic Republic of Congo, Comoros, Togo, and Senegal.
Axian has an established record of working with development finance institutions, having previously raised capital from IFC, British International Investment (BII), DEG, and Proparco. Its mobile money business, Yas, boasts over 15 million users, and the operator already maintains administrative offices in Nairobi.
By acquiring Wananchi, Axian gains a ready entry into Kenya’s competitive broadband market and an opportunity to expand its integrated digital ecosystem—combining mobile, fiber, and fintech infrastructure under one regional umbrella.
