Vodacom Group, South Africa’s biggest telco, has said it would be open to buying part of the Kenyan government’s shareholding in Safaricom, as Nairobi prepares what could be its biggest privatisation move in nearly two decades.
The Treasury plans to sell an undisclosed portion of its 34.9% stake in the telecoms operator before the end of the 2025/26 fiscal year, hoping to raise about KES 149 billion ($1.1 billion) to ease pressure on public finances. The government plans to sell the stake to fill the fiscal gap and avoid imposing new taxes in a strained economy.
Vodacom, which already owns 39.9% of Safaricom alongside UK parent Vodafone, told investors it expects to be consulted once the government formally begins the sale process. Such a deal could tip the Johannesburg-listed operator into majority control of East Africa’s most valuable company.
“We look at any market where our partners want to sell,” said Vodacom chief executive Mohamed Josub on a second-quarter earnings call on November 11. “We’ve been partners for a very long time and, if there is a want to sell, I’m sure they’ll talk to us.”
Largest transactions
While the government is yet to flesh out the plan, a sale of even 10% of the state’s holding could fetch about KES 119.6 billion ($887 million), making it one of the largest transactions in East Africa’s capital markets.
“There is talk that if we could offload more of our ownership of Safaricom, where we are likely to get the Sh149 billion ($1.1 billion) through privatisation in the 2025/26 financial year,” John Mbadi, Treasury Cabinet Secretary, said in April.
Kenya last sold shares in Safaricom during its oversubscribed 2008 IPO, which brought in KES 51.75 billion ($384 million). Since then, attempts to privatise state enterprises—from sugar mills to hotels and telcos—have stalled due to political pushback, weak balance sheets, and governance concerns.
The company remains the region’s most profitable company, reporting an 11% rise in net profit to KES 69.8bn ($540 million) for the full year 2024, driven by steady growth in its M-Pesa mobile money platform and data services.
Safaricom, valued at about KES 1.196 trillion ($8.8 billion), dominates Kenya’s telecoms market, with about 60% of mobile subscribers. Its growth has held up this year, with revenue for the six months to September rising 11.1% to KES 199.9 billion ($1.4 billion).
In 2024, Safaricom paid a KES 1.20 dividend per share, handing KES 19.2 billion ($ 142 million) to Vodacom and KES 16.8 billion ($ 124 million) to the government. The board is expected to announce an interim payout in February 2026.
