Do you remember the whole Vodacom-Safaricom dance we delivered to your inbox on Friday? The one where we noted that Vodafone, owned by Vodacom, now has a 55% majority control stake in Safaricom due to the Kenyan government selling 15% of its stake. Remember, we noted Vodacom was still awaiting regulatory approvals from the Capital Markets Authority (CMA), the Competition Authority (CAK), the Central Bank of Kenya (CBK), and regional competition bodies before gaining full control. Vodacom has also said it is not trying to take full control of Safaricom, but well, whatever the long-term plan is, the Kenyan government has given conditions for the deal to progress, and they are… firm.
Top of the list: Safaricom’s CEO and board chair must be Kenyan citizens. Full stop. Regardless of a foreign majority ownership or not, the Kenyan government wants leadership to stay local.
That’s just the beginning: Vodacom cannot alter Safaricom’s name, trademarks, brand identity, or corporate symbols without government approval. It also can not introduce sweeping changes to suppliers or declare staff redundancies outside normal business cycles. Even expansion outside Kenya requires consultation with the state. In addition, all Safaricom and M-PESA Foundation trustees must be Kenyan, and its funds must be spent domestically.
What does this mean? The Kenyan government needed some extra cash, but not a loss of control. Safaricom is a national asset, and these conditions allow the government to preserve its identity, workforce, and regional priorities even after selling a significant stake.
Is this unusual in Africa? Surprisingly, no. Countries often tighten governance rules when foreign ownership rises. In Ethiopia, foreign investors are only allowed to own up to 49% of local banks. This is after decades of the country’s banking industry being off-limits for foreign players.
Can Kenya do this legally? If Vodacom agreed to the terms, and it looks like they did, then absolutely. So yes, Vodacom is getting 55%, but Kenya is holding the steering wheel with two hands.
