Vodafone-linked traders are set to take formal management of Safaricom after a proposed KES 204.3 billion ($1.57 billion) share transaction that lifts their mixed stake to 55%, crossing the 50% regulatory threshold for efficient management.
The transaction, disclosed in a public discover dated December 3, modifications the possession of East Africa’s most worthwhile firm and arms the Kenyan authorities a uncommon, giant money influx amid rising fiscal stress.
Below the proposal, Vodafone Kenya will purchase a 15% stake from the Kenyan authorities by shopping for over 6 billion shares at KES 34 ($ 0.26) per share, valuing the sale at about $1.57 billion.
The worth values Safaricom at a premium to its latest buying and selling ranges on the Nairobi Securities Change (NSE) and ranks among the many largest single-equity transactions in Kenya’s historical past, together with its 2008 preliminary public providing that raised $400 million.
The federal government will retain a 20% stake after the sale. Public traders will proceed to carry 25%.
The deal is paired with an inner restructuring throughout the Vodafone and Vodacom Group. Vodacom Group, the South African operator that already owns 87.5% of Vodafone Kenya, will increase its stake to 100% by shopping for out the remaining shareholders. That reorganisation provides an oblique 4.99% curiosity in Safaricom to the broader group.
Each strikes carry Vodafone Kenya’s direct and oblique holding in Safaricom to 55%, giving it majority management for the primary time since Safaricom’s itemizing in 2008.
Vodafone Kenya may also pay the federal government KES 40.2 billion ($309 million) for the precise to obtain future Safaricom dividends that will have accrued to the state. That permits the treasury to monetise revenue streams upfront fairly than ready for annual payouts.
Safaricom is Kenya’s most precious listed firm and its greatest company taxpayer. It paid KES 48.08 billion ($379 million) in dividends in FY 2025, and dominates cellular cash by means of M-PESA, whose market share stands at 91%.
The discover clarifies that Vodafone Kenya doesn’t intend to set off a full takeover supply for the remaining Safaricom shares.
“Vodafone Kenya doesn’t intend to launch a takeover supply of Safaricom,” Safaricom mentioned in a press release.
Below Kenyan takeover guidelines, crossing the 50% mark requires a suggestion to minority shareholders. Vodafone plans to hunt an exemption from the Capital Markets Authority (CMA), a sign that Safaricom is predicted to stay listed and extensively held.
Regulatory approvals are nonetheless required from a number of companies, together with the CMA, the Competitors Authority (CAK), the Central Financial institution of Kenya (CBK), and regional competitors our bodies.
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