Kenya has accelerated its state-asset sale programme with the decision to sell a 15% stake in Safaricom—its biggest and most profitable company—to South Africa’s Vodacom Group. The transaction, valued at KES 34 per share, is worth approximately $1.6–$2.1 billion depending on the final structure, and marks one of the most significant telecom deals in Africa this year.
The sale comes as President William Ruto’s administration searches for innovative ways to strengthen public finances amid high debt-servicing obligations. Kenya currently spends nearly 40% of government revenues on debt repayments, leaving limited room to increase taxes or expand borrowing. According to Finance Minister John Mbadi, proceeds from the Safaricom transaction will serve as seed capital for a newly created National Infrastructure Fund and the country’s first sovereign wealth fund, both intended to finance roads, energy assets, irrigation systems, and airport upgrades without expanding national debt.
“This transaction is one of the first steps in the President’s agenda of unlocking capital without increasing taxes or the country’s debt burden,” Mbadi said, adding that the government would retain a 20% shareholding in Safaricom and continue to influence its strategic direction.
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Vodacom, which currently holds a 39.9% indirect stake in Safaricom through a joint structure with parent company Vodafone, will increase its ownership to 55% following the sale of the government’s 15% stake and an additional 5% acquired from Vodafone. Should the transaction secure regulatory approval in Kenya, Ethiopia, and South Africa, Vodacom will become the clear controlling shareholder of Safaricom—one of Africa’s most valuable telecommunications and fintech assets.
Vodacom CEO Shameel Joosub described the acquisition as a “landmark transaction” aligned with the group’s Vision 2030 strategy, which focuses on deepening presence in high-growth African markets and scaling its telecom-fintech ecosystem. “Acquiring a controlling stake in Safaricom strengthens our position as a market leader and unlocks opportunities to accelerate digital and financial inclusion in Kenya and Ethiopia,” Joosub said.
Safaricom CEO Peter Ndegwa welcomed Vodacom’s increased commitment, calling the move a vote of confidence in the company’s people, strategy, and long-term outlook. “Vodacom has been a trusted partner from the beginning,” Ndegwa said. “We look forward to deepening our collaboration as we expand regionally and scale transformative digital and financial services.”
Safaricom remains the dominant player on the Nairobi Securities Exchange, accounting for the bulk of daily trading activity. Its flagship mobile money service, M-Pesa, is one of Africa’s most successful fintech products and a major contributor to Safaricom’s strong margins and cash generation. The company is also driving expansion in Ethiopia, a market it entered in 2022 and one of Africa’s biggest growth frontiers.
While Vodacom’s shares dipped following the announcement, Safaricom’s rose by over 4% to 29.25 shillings. Analysts say Vodacom is paying a “control premium,” but the long-term strategic benefits—ranging from consolidated financial reporting to increased regional scale—justify the price.
The move underscores Kenya’s pivot toward unlocking value from state assets, while positioning Vodacom as the most dominant telecom and fintech operator in East Africa. If approved, the deal will reshape the ownership structure of one of Africa’s most influential digital infrastructure companies.
