Vodacom Completes Acquisition of Additional Stake to Take Control of Safaricom

Vodacom has officially taken control of Safaricom after completing the acquisition of the Kenyan government’s remaining 15% stake in the company. The transaction increases Vodacom’s shareholding in Safaricom to approximately 55%, making it the controlling shareholder.

The deal was confirmed by Vodafone Group, Vodacom’s parent company. It marks the conclusion of a process that began with an agreement between the parties last year.

The Kenyan government’s stake has now reduced from 35% to 20%. The government retains two seats on the Safaricom board under the terms of the transaction.

Proceeds from the sale, valued at approximately KSh204.3 billion (around $1.58 billion), will be channelled into Kenya’s National Infrastructure Fund. The fund is expected to support major infrastructure projects including energy, roads and water initiatives.

The transaction also involved an upfront dividend payment of KSh40.2 billion from the government’s remaining stake. Combined inflows are expected to provide significant seed capital for both the National Infrastructure Fund and the Sovereign Wealth Fund.

Safaricom remains listed on the Nairobi Securities Exchange. The company continues to operate as a publicly traded entity despite the change in majority ownership.

The acquisition strengthens Vodacom’s strategic position in East Africa’s largest economy. Analysts expect enhanced technical collaboration and accelerated investment in 5G, fintech and digital services.

The deal faced legal challenges earlier but was cleared after the Court of Appeal lifted conservatory orders that had temporarily halted the transaction.

Safaricom’s day-to-day operations and customer services are expected to continue without disruption. The company remains a dominant player in mobile voice, data and mobile money services in Kenya.

The transaction reflects the Kenyan government’s broader strategy of divesting non-strategic assets to raise capital for critical infrastructure development.