At a Glance
- Vodacom’s holding rises to 55%, giving effective control over Kenya’s largest telecom.
- Regulators confirm competitive pricing, minimal impact on market structure or COMESA region.
- Sale supports government finances, attracting local and international investors to Safaricom shares.
Kenyan regulators have approved the $1.6 billion sale of a 15 percent government stake in Safaricom to South Africa’s Vodacom, raising Vodacom’s ownership from 39.9 percent to 55 percent. This gives the South African telecom operator effective control over Kenya’s largest company by market capitalization.
Regulators confirm a fairly priced transaction
Regulators, including the Capital Markets Authority (CMA), Competition Authority (CAK), and Communication Authority of Kenya (CA), said the transaction was competitively priced and unlikely to distort the market. The CAK also confirmed that the divestment will not alter the regional telecom market structure within the Common Market for Eastern and Southern Africa (COMESA).
The Competition Authority and CA also assessed potential market impacts. CAK Director General David Kemei noted that the divestiture would not alter the regional market structure within the Common Market for Eastern and Southern Africa (COMESA).
CA Director General David Mugonyi confirmed that regulatory approval would be granted within a week, emphasizing that the transaction maintains local equity through continued government participation.
Vodacom gains control over Safaricom shares
Vodafone Kenya Limited, acting on behalf of Vodacom, has applied for exemptions from mandatory takeover obligations for minority shareholders and has publicly announced the acquisition in line with regulatory requirements. Approval from Ethiopia and other relevant authorities will also be required due to cross-border implications.
The sale comes as President William Ruto’s government seeks to raise cash by monetizing state assets, with annual debt repayments consuming nearly 40 percent of government revenue. The Safaricom divestiture is expected to appeal to both local and international investors, boosting liquidity and potentially lifting share prices further, while positioning Vodacom as the controlling shareholder of Kenya’s leading telecom and mobile money operator.
This transaction underscores a growing trend in African markets where governments leverage high-value state assets to strengthen public finances while attracting strategic foreign investment.
