South Africa’s Vodacom Group is set to take a controlling 55 percent stake in Safaricom after signing a deal to buy a total of eight billion shares from the government and UK’s Vodafone Group at a cost of $2.1 billion (Sh272.4 billion).
The Midrand-based multinational currently owns a 35 percent interest in the Nairobi Securities Exchange-listed firm. It will now buy six billion shares amounting to a 15 percent stake from the National Treasury and two billion shares (5 percent) from Vodafone at a price of Sh34 per share, with the deal expected to be concluded in the first quarter of 2026.
The government will receive Sh204.3 billion for its shares and a separate Sh40.2 billion representing an upfront payment of dividends that will accrue on the State’s residual 20 percent stake in Safaricom. This will bring its total payout to Sh244.5 billion.
Vodafone, which is the ultimate parent firm of both Safaricom and Vodacom, will receive Sh68.1 billion in the transactions that the South African multinational termed as part of simplification of ownership within the broader group.
“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Vodacom’s chief executive Shameel Joosub said in a statement.
“Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to working even closer with the Safaricom team and taking some of the learnings from their success in Kenya and leveraging it across the Group.”
Budgetary support for Ruto administration
Safaricom PLC headquarters in Westlands, Nairobi.
Photo credit: File | Nation Media Group
For the government, the sale of its 15 percent stake provides much-needed funds for budgetary support amid a heavy debt burden. The government has lined up divestitures from several State-owned enterprises including Kenya Pipeline Company (KPC) as it seeks alternative sources of funds.
“This transaction is one of the first steps in the president’s stated agenda of innovatively unlocking capital, without increasing taxes or the country's debt burden, to allow additional investment in critical infrastructure to support future growth,” National Treasury Cabinet Secretary John Mbadi said.
“Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20 percent stake as well as board representation.”
On completion of the transaction, Vodacom will be the controlling shareholder with a 55 percent stake, followed by the government (20 percent) and public investors (25 percent).
This is the second time the government is cashing in on its Safaricom's ownership, having sold a 25 percent stake to public investors in 2008 through an initial public offering that raised Sh51 billion.
Besides the capital gains, Safaricom has been a cash cow for the government in other ways including taxes and dividends. The telco had paid a cumulative Sh1.57 trillion in duties, taxes and licence fees to the government as of September 2025, making it the biggest contributor to the national coffers.
With a controlling stake in Safaricom, Vodacom will gain more influence in the company's strategy going forward.
"Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business," Safaricom's chief executive Peter Ndegwa said.
"Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead. We look forward to deepening our collaboration as we continue to scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
Below, find Safaricom's recent Half-Year results.
