At a Glance
- Safaricom dominates the NSE with a $5.27 billion market cap, representing 35.1% of the exchange’s total value.
- Vodafone Kenya’s stake in Safaricom gained $714.39 million in 2024, driven by share price and currency appreciation.
- Safaricom’s share price increased 24.91% in local currency and 51.24% in dollar terms, boosting investor returns.
Vodafone Kenya Ltd (VKL), a Vodafone Group subsidiary with an indirect stake in Safaricom, saw substantial portfolio gains in 2024, driven by a sharp rise in Safaricom’s market value. Safaricom, East Africa’s largest telecom operator, is led by Kenyan tycoon Peter Ndegwa.
Vodafone holds a 39.94 percent indirect stake in Safaricom through its wholly-owned subsidiary, Vodafone Kenya Ltd (VKL), representing 16 billion shares. Since the start of the year 2024, this investment has gained Ksh54.4 billion ($714.39 million), driven by strong performance on the Nairobi Securities Exchange (NSE).
Safaricom’s market cap exceeds $5.2 billion
Safaricom, Kenya’s leading telecom provider, is the most valuable company on the Nairobi Securities Exchange (NSE) with a market cap of Ksh 695 billion ($5.27 billion). This represents 35.1 percent of the NSE’s total value, with its network covering 46 percent of Kenya’s population.
Founded in 1997, Safaricom has evolved from a modest telecom provider into a powerhouse, driven by innovation, strategic partnerships, and consistent financial performance. Its share price on the Nairobi Securities Exchange surged from Ksh13.65 on January 1 2024 to Ksh17.05 as of Dec. 31, 2024, reflecting a 24.91-percent increase in local currency.
However, the appreciation of the Kenyan Shilling—gaining 21.17 percent against the US dollar—has further amplified this growth in dollar terms. Adjusted for currency fluctuations, Safaricom’s shares have risen from $0.1054 to $0.1316, marking a remarkable 51.24 percent gain, increasing shareholder value.
Vodafone Kenya’s holdings gained $714.4 million
Vodafone Kenya Ltd’s stake in Safaricom has surged in value, rising from Ksh 218.4 billion ($1.39 billion) to Ksh 272.8 billion ($2.11 billion), reflecting a gain of $714.39 million due to the increase in Safaricom’s share price.
In May 2017, Vodacom acquired 87.5 percent of Vodafone Kenya Ltd (VKL), gaining a 35 percent indirect interest in Safaricom, while Vodafone retained 12.5 percent in VKL, or 5 percent indirect ownership of Safaricom.
The €2.36 billion($2.43 billion) deal saw Vodacom issue 226.8 million new shares to Vodafone. Vodacom continued reporting its Safaricom stake under the equity method, with no material impact on cash flow or earnings.
Post-transaction, Vodacom’s free float dropped to 18 percent, below the JSE’s 20 percent requirement, securing a two-year exemption, with Vodafone committing to reduce its stake if necessary.
Safaricom’s 2024 performance saw a 51.24 percent increase in investment value, fueled by a strong Kenyan Shilling.
With 65 listed companies across sectors like financial services, agriculture, and manufacturing, Safaricom commands 35.1 percent of the Nairobi Securities Exchange’s equity market, cementing its position as a corporate leader and key driver of Kenya’s economic growth.
