Last week, Vodacom announced an agreement to increase its ownership in Safaricom from 35% to 55%, acquiring a 15% stake from the Kenyan government and an additional 5% from Vodafone. The total transaction is valued at approximately $2.1 billion (R36 billion). Once finalised, the Kenyan government will still retain a 20% stake in Safaricom.
According to local media, the Kenyan government issued a statement emphasising that Safaricom’s chairman and CEO must always be Kenyan citizens. The government also mandated that Vodacom cannot alter Safaricom’s corporate brand without prior approval and clarified that any restructuring within the company should not lead to employee layoffs outside of normal business operations. Furthermore, Vodacom is restricted from making changes to Safaricom’s existing supplier ecosystem for at least three years, and any plans to expand Safaricom’s presence outside of Kenya must be subject to government consultation, although approval will not be required for such expansion.
Vodacom is eager to gain greater control of Safaricom as part of its Vision2030 strategy, which aims to strengthen its leadership position across Africa’s rapidly growing markets and diversify its portfolio. Safaricom has been a standout performer, boasting strong financial results and growth across telecom services, technology, and fintech, with its flagship M-Pesa platform playing a significant role in the company’s success.
