Vodacom Group Limited, which currently owns a 40% stake in Safaricom PLC through Vodafone Kenya Limited, has proposed to purchase an additional 15% stake in Safaricom from the Government of Kenya (GoK). The 15% stake equates to 6,009,814,200 ordinary shares and the proposed acquisition price is KES 34.00 per share, with the monetary consideration at KES 204.3 billion/USD 1.6 billion. Kenya’s government owns 14,022,572,580 shares in Safaricom, equivalent to 35% of the company’s issued shareholding.
In tandem, Vodacom, which owns 87.5% of Vodafone Kenya (the vehicle that directly holds 40% of Safaricom PLC), will be raising its stake to 100% by buying out the 12.5% stake (equating to 50 shares) held by Vodafone International Holdings B.V. This move is set to result in Vodacom’s indirect acquisition of a 5.0% stake in Kenya’s leading telco, and ultimately result in Vodafone Kenya gaining majority control (55%) of the telco should the proposal to acquire the 15% additional stake from GoK sail through.
The proposal by Vodacom is a major reorganisation in Safaricom’s shareholding structure and a key step in GoK’s privatization agenda. GoK has maintained its 35% stake in the telco since the firm went public through an Initial Public Offering in March 2008.
As at the announcement of the transaction on 3rd December 2025, the purchase price of KES 34.00 represented a premium of 18.4% to the past 90 trading days Volume Weighted Average Price (VWAP), and a premium of 33.9% to the past 180 trading days VWAP. As at the close of trading on 8th December 2025, Safaricom’s share price was KES 28.85, a discount of 17.9% to the KES 34.00 proposed purchase price.
GoK to Retain Board Chairmanship in Safaricom
As part of the transaction, Vodafone Kenya Limited reached an agreement with the Kenyan government to buy the right to receive future dividends from Safaricom. Vodafone Kenya will be paying KES 40.2 billion/USD 309 million upfront to GoK in respect off the future dividends that will accrue to the remaining 20% stake held by Kenya’s government. In total, the proceeds from the partial divestiture by the Kenyan government are KES 244.5 billion/USD 1.89 billion, which the government intends to direct to critical infrastructure development.
Post-transaction, Vodacom will be the majority shareholder in the telecommunications firm, owning a 55% stake, with the government of Kenya owning 20%, and others 25%. While Kenya’s government has significantly reduced its shareholding in the telecommunications firm, agreements between Vodacom and the government will see that Kenya retains rights to appoint two directors to the board to ensure continuity in governance. Further, the agreement will see to it that the Chairman of the Board as well as the independent directors are Kenyan.
Vodafone intends to maintain the listing of Safaricom (NSE:SCOM) at the Nairobi Securities Exchange (NSE) and will not pursue a take-over offer for Safaricom, and as such, the telecommunications firm will apply to the Capital Markets Authority of Kenya (CMA) for exemption from the requirement to take over the telecommunications firm.
The proposed acquisition is subject to approvals from regulatory authorities in Kenya, Ethiopia and South Africa., and the transaction is expected to close in Q1 2026. In line with the processes around the government’s divestiture in Safaricom, the National Treasury and Economic Planning ministry has submitted a sessional paper to Kenya’s Parliament, which has in turn invited comments from the public regarding the divestiture, with the deadline set at Thursday 8th January 2025, 1700H EAT.
Also read: Vodacom Eyes Portion of Government’s 35% Stake in Safaricom PLC
