Vodafone gets green light on $1.5 billion Safaricom stake

Global telecom giant Vodafone has cleared a major regulatory hurdle in its bid to strengthen control over Safaricom PLC after Kenya’s Capital Markets Authority exempted the company from making a mandatory takeover offer to minority investors.

The decision paves the way for a KSh204.3 billion ($1.5 billion) transaction that will see Vodafone Kenya acquire 6.01 billion Safaricom shares from the Government of Kenya at KSh34 ($0.26) per share.

Vodafone set to lift Safaricom ownership to 55%

Upon completion of the deal, Vodafone Kenya’s stake in Safaricom will rise from 40% to 55%, cementing majority ownership in East Africa’s most valuable listed telecommunications company.

The Kenyan government’s shareholding will decline from 35% to 20%, while public investors will continue to hold 25% of the Nairobi-listed telecom operator.

As part of the broader agreement, Vodafone Kenya will also make an upfront payment of KSh40.2 billion ($310 million) to secure rights to future dividends linked to the government’s remaining stake.

Internal restructuring drives the transaction

Vodafone argued that the acquisition should not trigger takeover rules because it represents a negotiated shareholder transaction combined with an internal restructuring within the Vodafone Group rather than a conventional takeover bid.

The restructuring includes a parallel transaction in which Vodacom Group will acquire the remaining 12.5% interest in Vodafone Kenya held by Vodafone International Holdings B.V.. Once completed, Vodacom will own Vodafone Kenya outright and indirectly control roughly 55% of Safaricom.

More regulatory approvals still required

Despite receiving CMA approval, the transaction remains subject to additional competition and telecommunications clearances across multiple jurisdictions before completion.

Vodafone’s influence in Kenya already extends beyond traditional telecommunications. Through Safaricom, the company controls the country’s largest mobile network and the market-leading M-PESA digital payments ecosystem.

Safaricom, founded in 1997, serves more than 44 million subscribers and remains one of East Africa’s most profitable companies, underscoring the strategic importance of Vodafone’s push for deeper exposure to Africa’s fast-growing digital economy.