Safaricom is heading into one of its biggest ownership changes in years after Vodafone announced plans to buy the government’s Sh204 billion stake. Safaricom shareholders have been formally notified that Vodafone Kenya wants to acquire an extra 15% of the company—about 6.009 billion shares—from the Government of Kenya at Sh34 per share.
This move is part of a larger internal reorganisation within Vodafone Kenya and Vodafone Group meant to consolidate ownership and strengthen Vodafone’s control over Safaricom.
Key Steps in the Transaction
1. Vodafone Kenya to purchase the government’s 15% stake
Vodafone Kenya will buy the 6.009 billion government shares worth Sh204.3 billion, giving it effective indirect control of 55% of Safaricom.
2. Vodacom Group to fully acquire Vodafone Kenya
Vodacom, which already owns 87.5% of Vodafone Kenya, will buy the remaining Vodafone Group shares for Sh68.1 billion, making it the sole owner of Vodafone Kenya. This further tightens its indirect control of Safaricom.
3. Vodafone Kenya to pay the government upfront for future dividends
Vodafone Kenya will pay Sh40.2 billion to the government in exchange for future dividends linked to the government’s remaining 20% stake in Safaricom.
The government will still hold the 20%, but Vodafone will collect dividends from those shares going forward.
No Mandatory Takeover Offer
Although Vodafone Kenya will gain effective control under takeover rules, it has asked the Capital Markets Authority to exempt it from making a mandatory offer to other shareholders. Vodafone says the aim is corporate restructuring, not taking over the company.
Why Vodafone Is Restructuring
Vodafone says the new structure will simplify Safaricom’s ownership, align it better with Vodacom’s African operations, strengthen governance, and improve long-term investment decisions. Vodacom adds that this move supports its strategy to unify and grow its African portfolio.
Approvals Required
The deal still needs approval from the Cabinet, Parliament, the CMA, and other regulators, including the Communications Authority, Central Bank, EAC Competition Authority, and COMESA Competition Commission. Safaricom has advised investors to be cautious when trading its shares until the process is completed.
About the Author
