Vodafone-linked investors are set to take formal control of Safaricom after a proposed KES 204.3 billion ($1.57 billion) share transaction that lifts their combined stake to 55%, crossing the 50% regulatory threshold for effective control.
The transaction, disclosed in a public notice dated December 3, changes the ownership of East Africa’s most profitable company and hands the Kenyan government a rare, large cash inflow amid rising fiscal pressure.
Under the proposal, Vodafone Kenya will acquire a 15% stake from the Kenyan government by buying over 6 billion shares at KES 34 ($ 0.26) per share, valuing the sale at about $1.57 billion.
The price values Safaricom at a premium to its recent trading levels on the Nairobi Securities Exchange (NSE) and ranks among the largest single-equity transactions in Kenya’s history, including its 2008 initial public offering that raised $400 million.
The government will retain a 20% stake after the sale. Public investors will continue to hold 25%.
The deal is paired with an internal restructuring within the Vodafone and Vodacom Group. Vodacom Group, the South African operator that already owns 87.5% of Vodafone Kenya, will raise its stake to 100% by buying out the remaining shareholders. That reorganisation adds an indirect 4.99% interest in Safaricom to the wider group.
Both moves lift Vodafone Kenya’s direct and indirect holding in Safaricom to 55%, giving it majority control for the first time since Safaricom’s listing in 2008.
Vodafone Kenya will also pay the government KES 40.2 billion ($309 million) for the right to receive future Safaricom dividends that would have accrued to the state. That allows the treasury to monetise income streams upfront rather than waiting for annual payouts.
Safaricom is Kenya’s most valuable listed company and its biggest corporate taxpayer. It paid KES 48.08 billion ($379 million) in dividends in FY 2025, and dominates mobile money through M-PESA, whose market share stands at 91%.
The notice clarifies that Vodafone Kenya does not intend to trigger a full takeover offer for the remaining Safaricom shares.
“Vodafone Kenya does not intend to launch a takeover offer of Safaricom,” Safaricom said in a statement.
Under Kenyan takeover rules, crossing the 50% mark requires an offer to minority shareholders. Vodafone plans to seek an exemption from the Capital Markets Authority (CMA), a signal that Safaricom is expected to remain listed and widely held.
Regulatory approvals are still required from multiple agencies, including the CMA, the Competition Authority (CAK), the Central Bank of Kenya (CBK), and regional competition bodies.
