Shareholders of Kenyan telecommunications company Safaricom will vote later this month on a proposal that would give Vodafone Kenya the right to nominate the company’s chief executive officer once it holds more than 50% of Safaricom’s issued share capital.

The proposal is among several governance changes listed in Safaricom’s notice for its annual general meeting scheduled for July 31.

The vote follows the completion of Vodacom’s acquisition of the Kenyan government’s 15% stake in Safaricom for about $1.6 billion. The transaction, completed on June 30, increased Vodafone Kenya’s holding in Safaricom to 55% from 39.9%, while the government’s stake fell to 20%.

The remaining shares are held by public investors and traded on the Nairobi Securities Exchange.

If approved, the amended articles of association would require Safaricom’s chief executive to be selected from a list of candidates nominated by Vodafone Kenya for as long as it owns more than half of the company’s issued share capital.

Board structure and oversight

The proposed changes also call on Safaricom’s board to maintain “a predominantly Kenyan character” across the company’s senior management and executive committee.

Under the revised governance framework, the board would have a minimum of seven directors with no fixed upper limit. Vodafone Kenya and the Kenyan government would each retain the right to appoint one director for every full 10% stake they hold in the company.

The proposals also preserve the government’s oversight on key strategic matters. Any material change to the Safaricom brand or plans to expand operations beyond Kenya and Ethiopia would continue to require government approval. The resolutions require the backing of at least 75% of shareholders to pass.

Vodacom holds Safaricom through Vodafone Kenya

Vodafone Kenya serves as the investment vehicle through which Vodacom holds its stake in Safaricom.

Vodacom is majority-owned by Vodafone Group and serves more than 230 million customers across Africa through its mobile, broadband and financial services businesses.

Founded in 1997, Safaricom has more than 57 million subscribers and remains one of East Africa’s largest and most profitable companies, making it a key asset in Vodafone’s long-term investment strategy across the continent.