Government Sells 15% Safaricom Stake to Vodacom in Ksh.245 Billion Deal
This move allows the Treasury to monetise future income streams upfront while giving Vodacom a stronger foothold in East Africa’s leading telecom operator
By : Mweru Mbugua
The Kenyan government has announced plans to offload a 15% stake in Safaricom to Vodacom Group Limited, a deal valued at Ksh.244.5 billion
The sale, representing 6,009,814,200 ordinary shares at Ksh.34 each, will reduce the State’s shareholding in Safaricom from 35% to 20%. As part of the agreement, Vodacom will also make an upfront payment of approximately Ksh.40.1 billion for the rights to Ksh.55.7 billion in future dividends that would have accrued to the government from its remaining stake
This move allows the Treasury to monetise future income streams upfront while giving Vodacom a stronger foothold in East Africa’s leading telecom operator
In a simultaneous arrangement, Vodacom will acquire an additional 5% stake from Vodafone International Holdings, boosting its total shareholding in Safaricom from 35% to 55% marking its first majority control since Safaricom’s listing in 2008
The transaction will shift Safaricom’s financial reporting from being an associate company to full consolidation into Vodacom Group’s accounts, significantly increasing Vodacom’s reported revenue to around Ksh.1.6 trillion
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However, the acquisition is subject to approvals from regulators and authorities in Kenya, South Africa, and Ethiopia, where Safaricom recently launched operations
Kenya’s Capital Markets Authority (CMA) must also confirm that Vodacom is exempt from making a mandatory takeover offer to minority shareholders
Once completed, the deal will cement Vodacom’s controlling interest in one of East Africa’s most profitable companies, reshaping the region’s telecom landscape
