The Kenyan government has announced plans to sell a 15% stake in Safaricom to Vodacom Group Limited, a deal valued at KSh 244.5 billion. The transaction, which involves 6,009,814,200 ordinary shares at KSh 34 each, will reduce the government’s holding in Safaricom from 35% to 20%.
As part of the agreement, Vodacom will make an upfront payment of approximately KSh 40.1 billion for the rights to future dividends amounting to KSh 55.7 billion that would have accrued to the government on its remaining shares, enabling the Treasury to monetise these income streams immediately.
Vodacom will also purchase a 5% stake from Vodafone International Holdings, increasing its total shareholding in Safaricom from 35% to 55%. This marks the first time Vodacom will hold a majority stake since Safaricom’s 2008 listing, granting the South African telecommunications giant controlling ownership of East Africa’s most profitable telecom company.
The deal will significantly impact Vodacom’s financial reporting. Safaricom’s results, previously treated as an associate, will now be fully consolidated into Vodacom Group’s accounts, potentially boosting its reported revenue to around KSh 1.6 trillion.
The acquisition is subject to regulatory and governmental approvals in Kenya, South Africa, and Ethiopia, where Safaricom has recently expanded operations. Additionally, the Capital Markets Authority (CMA) in Kenya must confirm that Vodacom is exempt from making a mandatory takeover offer to minority shareholders.
This strategic move reshapes Safaricom’s ownership structure and signals a major shift in East Africa’s telecommunications landscape.
