By Benadeta Mwaura - Reporter
Kenya, July 9, 2026 - A proposed change to Safaricom's governance structure has ignited debate over the future control of Kenya's largest telecommunications company after shareholders were asked to approve amendments that would give Vodafone Kenya Limited the right to nominate the company's next Chief Executive Officer.
The proposal follows the completion of Vodafone Kenya's acquisition of the Kenyan government's 15% stake in Safaricom, increasing its shareholding to 55% and making it the majority shareholder.
The Kenyan government's stake has since fallen to 20%, while the remaining shares continue to be held by public investors through the Nairobi Securities Exchange (NSE).
If approved during Safaricom's Annual General Meeting (AGM) scheduled for July 31, the amendments would fundamentally alter how the company's top leadership is selected and redefine the balance of power between shareholders.
Under the proposed amendments to Safaricom's Articles of Association, Vodafone Kenya Limited (VKL) would gain the right to nominate the Chief Executive Officer whenever it owns more than 50% of Safaricom's issued share capital.
The CEO would still require formal approval by Safaricom's Board of Directors, meaning Vodafone would nominate rather than directly appoint the chief executive. The proposals would also allow Vodafone Kenya to nominate executive directors and shareholder-appointed directors while it remains the majority shareholder.
The governance changes are tied directly to the company's new ownership structure following the government's partial exit.
The governance review stems from the landmark transaction completed on June 30, when Vodafone Kenya finalized the purchase of the Kenyan government's additional 15% stake for approximately $1.6 billion (about KSh206 billion).
That acquisition raised Vodafone Kenya's ownership from 39.9% to 55%, effectively making Safaricom a subsidiary within the wider Vodacom-Vodafone Group while leaving the Kenyan government with a strategic minority holding.
Corporate governance experts note that majority shareholders in multinational companies often negotiate enhanced governance rights that reflect their larger financial exposure and responsibility for long-term strategy.
Does this make Kenya lose control of Safaricom? This question has dominated public debate.
Legally, Safaricom remains a Kenyan listed company, incorporated in Kenya and regulated by Kenyan laws. It will continue to trade on the Nairobi Securities Exchange and remain subject to oversight by local regulators.
However, operational influence over executive leadership would shift significantly if shareholders approve the proposals.
For the first time in the company's history, the majority shareholder, not the broader shareholder arrangement that previously balanced government and Vodafone interests, would formally nominate the CEO.
That represents a significant governance change, particularly because Safaricom operates some of Kenya's most strategic digital infrastructure, including M-PESA, enterprise cloud services, fibre networks and critical mobile communications infrastructure.
The other questions being raised the whether next CEO has to be a foreigner?
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It is important to note that the proposed amendments do not require the next CEO to be foreign.
Instead, they give Vodafone Kenya the authority to nominate a candidate, subject to board approval.
In fact, the draft governance changes also direct the board to maintain "a predominantly Kenyan character" within Safaricom's senior management and executive committee, signalling that local leadership remains an important consideration even under the new ownership framework.
Current CEO Peter Ndegwa, who became Safaricom's first Kenyan chief executive in 2020, remains in office.
Safaricom is far more than a mobile network operator.
The company serves more than 50 million customers across Kenya and Ethiopia and operates M-PESA, one of Africa's largest mobile money platforms. It has become central to Kenya's financial system, supporting payments, lending, savings, government collections and millions of daily business transactions.
Because of its strategic importance, any governance changes attract intense scrutiny from investors, regulators and policymakers.
The proposed amendments will be presented to shareholders for approval during the July 31 AGM.
If passed, Vodafone Kenya will officially acquire the right to nominate Safaricom's future CEO whenever it remains the majority shareholder. If shareholders reject the proposals, the current governance framework will remain in place until new arrangements are negotiated.
The vote is expected to be one of the most closely watched corporate governance decisions in Kenya this year, not only because it determines how Safaricom's future leaders will be selected, but also because it reflects the evolving relationship between foreign investment, shareholder rights and national strategic interests.
For investors, the proposals represent a natural consequence of Vodafone Kenya's majority ownership. For critics, however, they raise broader questions about how much influence Kenya should retain over one of its most valuable corporate assets following the reduction of the government's shareholding.
Regardless of the outcome, the AGM is likely to shape Safaricom's governance model for years to come as the telecommunications giant accelerates regional expansion and deepens investments in digital financial services across East Africa.