Vodacom Takes Control of Safaricom After Government Cuts Its Shareholding

Vodacom has become the majority owner of Safaricom following the Kenyan government’s sale of a 15 percent stake. The transaction raises Vodacom’s effective ownership to 55 percent while reducing the State’s holding to 20 percent.

The change in ownership follows the government’s sale of 6.01 billion Safaricom shares to Vodafone Kenya Limited for KES 204.3 billion through a block trade at the Nairobi Securities Exchange on June 30, 2026. The shares were sold at KES 34 each, increasing Vodafone Kenya’s direct stake from 40 percent to 55 percent, while public investors retained a 25 percent shareholding.

Separately, Vodacom acquired Vodafone’s remaining 12.5 percent interest in Vodafone Kenya, giving it full ownership of the holding company and lifting its effective stake in Safaricom from about 35 percent to 55 percent.

The Capital Markets Authority exempted Vodafone Kenya from making a mandatory takeover offer, allowing Safaricom to remain listed on the Nairobi Securities Exchange without requiring minority shareholders to sell their shares. Existing conditions tied to the government’s investment, including Kenyan citizenship requirements for Safaricom’s chairman and chief executive as well as two state-appointed board seats, remain unchanged.

The government expects to receive approximately KES 244.5 billion from the transaction, comprising KES 204.3 billion from the share sale and a KES 40.2 billion advance against future dividends from its remaining 20 percent stake. The funds are earmarked for the National Infrastructure Fund and the Sovereign Wealth Fund to finance projects in roads, energy, water and airport infrastructure.

However, the transaction remains the subject of an ongoing constitutional case challenging its valuation, transparency, public participation, national security implications and data sovereignty concerns. Although the Court of Appeal lifted orders that had temporarily halted the deal, the High Court is yet to determine the substantive petition.

With the acquisition completed, Vodacom will fully consolidate Safaricom’s revenues and earnings in its financial statements, strengthening its exposure to M-PESA and Safaricom Ethiopia, although the final court ruling could still affect the ownership structure.