Ahead of a deal that could see Vodacom acquire a 55% stake in Safaricom, giving it effective control over Kenya’s leading telecom operator, the Kenyan government has laid out a stringent set of conditions.
Under the proposed arrangement, the government would sell 15% of Safaricom to Vodacom, with an additional 5% acquired from parent company Vodafone, bringing Vodacom’s total stake to 55%. The acquisition, which is expected to close in the first quarter of 2026, is valued at roughly $2.1 billion.
However, the government is intent on preserving local control. The conditions imposed include ensuring that Safaricom’s chairman and CEO remain Kenyan citizens at all times, prohibiting major changes to the company’s brand identity, and requiring Vodacom to maintain the existing local supplier base for at least three years.
Beyond corporate governance, the government also seeks to protect jobs by stipulating that there should be no unusual staff layoffs outside the ordinary course of business and preserve ongoing community and philanthropic efforts.
Trustees for the Safaricom Foundation and M-PESA Foundation must remain Kenyan, and all funds committed to local initiatives must remain focused on Kenya.
Although Vodacom will assume majority ownership and control, Safaricom will remain listed on the Nairobi Securities Exchange. Public investors will continue to hold around 25% of the company, while the Kenyan government retains a 20% stake.
Vodacom has framed the acquisition as part of its broader pan‑African expansion under its “Vision 2030” strategy. Safaricom brings with it not only a dominant mobile operator but also control of one of Africa’s most successful fintech platforms, M-PESA, which processes over 100 million transactions daily and services some 38 million customers in Kenya alone.
As things stand, the transaction does not amount to a total takeover. The government has emphasised that the sale does not entail a full buyout. Rather, the change is simply structural, transferring control while preserving Safaricom’s public listing and existing shareholding base.