Kenya Finalises Safaricom Stake Sale as Vodacom Secures Majority Control
Africa’s telecom industry witnessed one of its biggest transactions in recent years after Vodacom officially completed its acquisition of an additional stake in Safaricom, giving the South African telecommunications giant majority control of East Africa’s largest telecom operator.
The deal, which had faced months of legal delays, was finalised on June 30, 2026, following approval from Kenya’s Court of Appeal, paving the way for a new chapter in Safaricom‘s growth strategy across Africa.
Vodacom Increases Safaricom Ownership to 55%
Vodacom has completed its $2.1 billion acquisition of the Kenyan government’s 15% stake in Safaricom, increasing its ownership from 35% to 55%.
The transaction makes Vodacom the controlling shareholder of Safaricom, strengthening its influence over one of Africa’s most successful telecommunications and financial technology companies.
According to reports, Kenya’s Treasury is expected to receive approximately KSh204.3 billion from the sale, alongside an additional KSh40.2 billion dividend payment linked to its remaining 20% shareholding in Safaricom.
Safaricom Shareholding Structure After the Deal
| Shareholder | Ownership Before | Ownership After |
|---|---|---|
| Vodacom | 35% | 55% |
| Kenyan Government | 35% | 20% |
| Public Shareholders | 30% | 25% |
Despite losing majority ownership, the Kenyan government will retain board representation and maintain a strategic stake in the telecom company.
Legal Challenges Delayed the Historic Acquisition
Vodacom first announced plans to acquire the government’s stake in December 2025, alongside an additional 5% share purchase from Vodafone International Holdings.
However, the deal faced several legal challenges that temporarily halted the acquisition process, forcing the Kenyan government to seek intervention from the Court of Appeal before the transaction could proceed.
The delay had unexpected financial benefits for Kenya, as the government remained eligible for billions of shillings in Safaricom dividends during the extended approval period, including an estimated KSh16 billion additional payout.
Why the Acquisition Matters for Africa’s Telecom Industry
The acquisition gives Vodacom greater control over Safaricom’s long-term strategy, particularly in key growth areas such as:
- Expansion of M-Pesa services across Africa
- Safaricom’s rapidly growing Ethiopian operations
- Digital financial services development
- Cross-border telecommunications infrastructure
- Regional digital inclusion initiatives
Industry analysts believe the deal could reshape Africa’s telecom landscape, especially as mobile money services continue to become a major revenue driver across the continent.
Investors Shift Focus to Safaricom’s Future Growth Strategy
With regulatory and legal barriers now cleared, investors are expected to closely monitor how the new ownership structure impacts Safaricom’s leadership, investment priorities, and regional expansion strategy.
Particular attention will likely focus on the company’s operations in Ethiopia and the continued growth of M-Pesa, widely regarded as one of Africa’s most successful fintech platforms.
