A South African private equity fund is seeking a 35 percent stake in Mawingu Networks, a Nairobi-based internet service provider backed by Microsoft and the U.S. Development Finance Corporation. The deal, if approved, would hand the fund a controlling interest in one of Kenya’s fastest-growing ISPs.
The Comesa Competition Commission (CCC) confirmed it is reviewing the proposed acquisition, which is set to take place through the Pembani Remgro Infrastructure Fund II (PRIF II). The fund is managed by Pembani Remgro Infrastructure Managers and counts heavyweight backers including the African Development Bank, the European Investment Bank, British International Investments, and the Coalition for Human Rights in Development.
While the value of the transaction remains undisclosed, the timing is significant. It follows Mawingu’s successful raise of Sh1.9 billion ($15 million) in debt financing late last year, with the Africa Go Green Fund contributing the lion’s share—Sh1.4 billion ($11 million)—as a long-term loan.
Mawingu CEO Farouk Ramji declined to provide details, saying the deal is in its early stages.
Founded in 2013, Mawingu began by utilizing unused TV frequencies following Kenya’s transition to digital broadcasting. The company has since evolved into a fibre and fixed wireless provider, expanding beyond its initial stronghold in Central Kenya to underserved regions in the north and west.
Mawingu now ranks as the sixth-largest ISP in Kenya, with a 3.2 percent market share and more than 59,000 users as of March—up from just over 16,000 two years ago.
The CCC noted that the proposed deal does not pose competition concerns within the Comesa region. “The proposed transaction will not raise any horizontal concerns as there are no overlaps between the activities of the acquiring group and the target group,” the commission said in its preliminary review.
Mawingu’s expansion momentum has been helped by its Microsoft affiliation and support from development finance partners. The company used part of the recent capital injection to enter Tanzania, acquiring Habari, an Arusha-based internet provider.
If approved, this transaction would mark PRIF II’s second known investment in Kenya, following its 2019 stake in iColo, a cloud and data center firm.
The Kenyan fixed internet market remains dominated by Safaricom with a 37.4 percent share, followed by Jamii Telecom (22.5%), Zuku (14.4%), Poa Internet (14.1%), and Vilcom (3.9%). Mawingu’s continued growth and now its pending equity deal signal a clear strategy to strengthen its position in a crowded field.
Rising demand for reliable internet access, fueled by remote work, e-learning, and streaming, has intensified competition. Even Starlink, Elon Musk’s satellite internet provider, has carved out a 0.9 percent share less than two years after launching in Kenya.
As the industry consolidates and foreign capital flows into local ISPs, Mawingu’s next chapter may offer insights into how smaller players can scale up with the right backing.
Mark your calendars! TechTrends Pulse lands in Nairobi this August! Join top tech leaders, innovators & AI experts for a half-day of keynotes, showcases & sharp insights on business transformation. RSVP now -limited slots available! Register here.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke