Kenya’s government has restructured its relationship with Safaricom in a deal that strengthens Vodacom Group’s control of the telecoms giant while delivering significant upfront cash to the State. Under the transaction, the National Treasury will sell a 15 per cent stake in Safaricom to Vodacom for Sh204.3 billion, priced at Sh34 per share.
This reduces the government’s direct shareholding from 35 per cent to 20 per cent, marking a major shift in the ownership balance of the country’s most valuable listed company.
Alongside the equity sale, Vodacom will also pay the Treasury Sh40.2 billion upfront to acquire rights to a portion of the government’s future Safaricom dividends, which are valued at Sh55.7 billion. The arrangement allows the State to receive cash immediately instead of waiting for dividend flows over coming years.
The deal also includes a separate transaction at group level, with Vodacom buying an additional five per cent stake in Safaricom from Vodafone Plc. Taken together with the Treasury purchase, Vodacom’s total holding rises to 55 per cent, giving it clear majority control and simplifying the shareholder structure around Safaricom.
From the government’s perspective, the transaction converts both a listed asset and a predictable future income stream into upfront funding. This provides near-term fiscal relief and additional budgetary headroom without introducing new taxes or borrowing.
For Vodacom, the deal increases its exposure to Safaricom’s long-term cash generation and strengthens its strategic influence over the operator, which dominates Kenya’s telecoms market. The outcome is a reshaped ownership structure that prioritises immediate liquidity for the State while consolidating control in the hands of Safaricom’s primary strategic investor.
