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Uganda’s impact may be stronger, with low fixed broadband penetration dominated by MTN and Airtel, and only a few fibre providers serving the enterprise market
Kampala, Uganda | THE INDEPENDENT | AXIAN Telecom has moved to strengthen its position in Africa’s digital infrastructure market with the completion of its acquisition of a 99.63 per cent stake in Wananchi Group, the operator behind Kenya’s Zuku and enterprise provider Simbanet.
The deal, executed through its fibre subsidiary Yas, signals a new phase of competition in East Africa’s fixed broadband sector, one increasingly shaped by rising data demand and accelerating enterprise digitalisation.
The transaction, which took nearly 18 months to close, required multiple regulatory approvals, including clearance from the COMESA Competition Commission. While AXIAN did not disclose the acquisition price, the International Finance Corporation provided KSh9.6bn ($62.5mn) in financing to support the deal—an endorsement of the long-term potential of East Africa’s fibre broadband market.
Wananchi’s network passes more than one million homes across Kenya, Uganda, Tanzania and Malawi, granting AXIAN instant scale in some of the region’s fastest-growing connectivity markets. Its entry comes at a time of mounting competitive pressure, particularly in Kenya, where Zuku has been battling for market share against Safaricom Home Fibre, Poa Internet and Jamii Telecommunications’ Faiba.
Hassan Jaber, AXIAN Telecom’s chief executive, described the acquisition as a strategic move to build a continent-wide broadband platform. “Wananchi Group’s network, customer relationships and local expertise align perfectly with our ambition to be a leader in broadband connectivity across Africa,” he said. “Together, we will unlock new potential for growth, innovation and value creation.”
Intensifying competition in Kenya and Uganda
The arrival of AXIAN is expected to reshape the competitive landscape in both Kenya and Uganda. In Kenya, analysts say Zuku now has access to the investment capacity needed to upgrade infrastructure, improve customer service levels and strengthen its value proposition after years of pressure from more capitalised rivals.
In Uganda, the impact may be even more significant. The country’s fixed broadband penetration remains low, with mobile operators MTN and Airtel dominating the consumer market and a handful of fibre players competing in the enterprise segment. AXIAN’s ownership of Zuku and Simbanet gives it an opportunity to accelerate fibre-to-the-home (FTTH) rollout while expanding corporate offerings such as SD-WAN and cloud connectivity, intensifying competition for incumbents that have been slow to scale fixed infrastructure.
Bertrand Lacroix, chief executive of AXIAN Telecom Fibre, said the company intends to invest first before considering any rebranding of Zuku. He added that the group aims to build a “leading pan-African broadband provider,” pointing to Yas’s recent doubling of its fixed broadband base and double-digit revenue and EBITDA growth as evidence of its capacity to scale.
Yas already operates in Tanzania, Madagascar, Comoros, Senegal and Togo. The integration of Wananchi is expected to enhance AXIAN’s economies of scale in equipment procurement, network expansion and operational efficiency. It also positions the group as one of the few pan-regional competitors capable of challenging incumbent telcos across multiple East African markets.
For businesses, AXIAN’s entry could accelerate access to enterprise-grade fibre connectivity, cloud integration and managed network services—critical tools as East African companies adopt digital-first operating models.
Sector outlook remains competitive
AXIAN has assured employees and regulators that no job losses are expected after the acquisition, signalling a strategy focused on growth rather than consolidation. Even so, the deal is likely to prompt competitive responses. Operators across Kenya and Uganda are expected to increase investment in fibre networks, strengthen customer experience systems and diversify digital service offerings.
As the battle for broadband intensifies, consumers may benefit from improved reliability, faster speeds and downward pressure on pricing—outcomes increasingly essential as East Africa’s economies transition toward deeper digital integration.
