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Kenyan Government To Sell 15% Safaricom Stake To Vodacom
Safaricom Plc is set for a major shift in its ownership structure following a landmark announcement that the Government of Kenya will sell a 15 per cent stake to Vodafone Kenya Limited for $1.6 billion, marking one of the largest corporate transactions in the country’s recent history.
The deal, priced at $0.27 per share, will see Vodafone Kenya acquire 6,009,814,200 ordinary shares, significantly boosting its influence over the region’s largest telecommunications and mobile money operator.
As part of a broader restructuring, Vodacom Group Limited will also increase its stake in Vodafone Kenya from 87.5 per cent to 100 per cent through an internal reorganisation involving the purchase of Vodafone International Holdings B.V’s interest, resulting in an additional 4.99 per cent indirect stake in Safaricom Plc being consolidated under Vodacom.
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When combined, these moves will push Vodafone Kenya’s total shareholding in Safaricom to 55 per cent, effectively cementing majority control for the British telecoms giant and its African subsidiary.
In addition to the share purchase, the agreement includes a provision granting Vodafone the rights to receive future Safaricom dividends. To secure these rights, Vodafone will make an upfront payment of $309 million to the government of Kenya. The arrangement is expected to provide the state with immediate fiscal support while allowing Vodafone to consolidate long-term value from Safaricom’s strong dividend performance.
Despite the growing stake, Vodafone Kenya has emphasised that it does not intend to launch a takeover offer for Safaricom, a move likely aimed at calming market speculation as the transaction progresses through regulatory and shareholder approval processes.
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The development marks a new chapter for Safaricom, which has long been jointly owned by Vodafone, the Government of Kenya, and local investors. The increased foreign ownership is poised to influence the telco’s strategic direction at a time when it is deepening its footprint in Ethiopia and expanding its fintech portfolio through M-Pesa.
More details are expected as the transaction moves toward completion, with the market closely watching potential impacts on Safaricom’s governance, regional expansion plans, and long-term investment strategy.