Regional Regulators Take Closer Look at Vodacom’s Growing Grip on Safaricom

Safaricom’s planned ownership change is now under review by regional competition regulators, shifting the spotlight from deal structure to its wider impact on competition in East and Southern Africa.

Competition authorities under the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) have opened reviews into the transaction, which would give South Africa’s Vodacom Group effective control of Safaricom, Kenya’s largest telecoms and mobile money company. Regulators want to assess whether the change could weaken competition or raise public-interest concerns across the region.

Safaricom is not only dominant in Kenya’s telecoms market but also plays a major role in mobile money, broadband, and financial services through M-Pesa. Its expanding footprint, including operations in Ethiopia, has made the deal more sensitive from a regional market perspective.

Under the proposal, Vodafone Kenya Limited, a Vodacom subsidiary, would buy an additional 15 percent stake in Safaricom. This would raise Vodacom’s total holding from 40 percent to 55 percent after an internal restructuring of Vodafone International Holdings’ shares. The Kenyan government would retain a stake of just under 20 percent.

Vodacom and its partners say the move is a strategic reorganisation that does not threaten competition. However, both COMESA and the EAC competition authority are taking a cautious approach. They have invited feedback from competitors, suppliers, customers, and other interested parties before making a decision.

Submissions to COMESA close on February 13, 2026, while the EAC process runs until February 16, 2026. The outcome will help determine whether the deal proceeds as planned or faces conditions to protect competition in one of the region’s most important digital and financial services markets.