By Benadeta Mwaura - Reporter
Kenya December 4 2025 - Safaricom has confirmed that Vodafone Kenya intends to purchase an additional 15% stake currently held by the Kenyan government, in a landmark transaction valued at about US $1.6 billion. After the deal, Vodafone Kenya’s total holding would rise to 55%, giving it majority control of Kenya’s biggest telecom operator.
Under the agreement, the government will retain a 20% stake, while public investors, the general shareholders listed on the Nairobi Securities Exchange (NSE), will hold 25%. As part of the deal, Vodafone Kenya will also pay the government upfront 40.2 billion Kenyan shillings in exchange for the rights to future dividends tied to the government’s residual shareholding.
Vodacom is paying 34 shillings per share, a healthy premium over the 28.20 shillings closing price at the time of the announcement. For Safaricom, this is more than just a share sale, it’s a structural shift in ownership, with consequences for governance, strategy and capital flows. The transaction gives Vodacom, already a major external investor, full operational control, aligning strategic decisions under a unified leadership and likely shaping the company’s direction for years.
For the Kenyan government, the sale represents a major asset monetization. With Kenya under mounting strain from high public debt and tight revenues, offloading part of its Safaricom stake offers a quick way to raise capital. Analysts say such sales are part of a broader push to reduce state dependency on underperforming or overvalued assets.
It also marks a continuation of a process that began in 2008, when the government first sold 25% of Safaricom via an initial public offering. At that time, the government owned 100%.
With majority control, Vodafone Kenya / Vodacom is in a position to influence, or overhaul, Safaricom’s longterm strategy. This may affect everything from expansion plans into other African markets to management of MPesa, the mobile money system that remains a cornerstone of Safaricom’s dominance.
More from Kenya
The increased foreign control may also stir debate about national ownership of critical infrastructure. While the public will still hold 25%, and government retains some stake, many Kenyans and observers may view majority foreign ownership with suspicion, especially given telecoms’ role in finance (mobile money), communications and national data.
That said, the infusion of foreign capital could bring advantages. Vodacom has deep pockets, experience across many African markets, and may ramp up investment in network expansion, infrastructure upgrades, and technological innovation, potentially improving service quality, expanding coverage, and lowering costs for consumers.
For investors and financial markets, Vodacom’s bold move signals confidence in East Africa’s telecom sector. It may attract further foreign direct investment into related infrastructure, data centres, fibre networks, fintech, beyond just telecommunications.
Still, several factors could complicate the transition: regulatory approvals, valuation of Safaricom’s residual 20% stake, potential public backlash, and the challenge of integrating Safaricom’s operations within a larger Pan African telecom framework without undermining local business environments.
