Vodacom completes Safaricom acquisition deal delivering Sh244.5 billion to government
The acquisition was completed after the Court of Appeal lifted a conservatory order on June 26, allowing the transaction to proceed.
Safaricom offices in Westlands. (Photo: Handout)
Vodacom Group has completed the acquisition of an additional 20 per cent stake in Safaricom PLC, raising its shareholding to approximately 55 per cent.
The landmark transaction effectively delivers approximately Sh244.5 billion to the Kenyan government through a Sh204.3 billion share sale and an upfront dividend payment.
The deal was concluded on the final day of the 2025/26 financial year, providing the State with a major boost to its revenues.
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Valued at $2.1 billion (about Sh272.2 billion) at the current exchange rate, the deal was first announced in December 2025.
It involved the Kenyan government selling a 15 per cent stake in Safaricom to Vodacom Group at Sh34 per share through an off-market block transaction valued at Sh204.3 billion, while Vodacom also acquired an effective additional five per cent stake from Vodafone Group Plc.
Following the sale, the government retains a 20 per cent stake in Safaricom, while 25 per cent remains held by public investors on the Nairobi Securities Exchange (NSE).
The acquisition was completed after the Court of Appeal lifted a conservatory order on June 26, allowing the transaction to proceed.
It also followed the Capital Markets Authority's (CMA) decision to exempt Vodafone Kenya from making a mandatory takeover offer to Safaricom's minority shareholders.
Safaricom confirmed that all conditions precedent had been fulfilled and that the government share acquisition was effected through a block trade on the NSE on June 30.
The concurrent internal reorganisation of Vodafone Kenya has also been finalised, resulting in Vodacom Group owning 100 per cent of Vodafone Kenya.
However, a petition relating to the government share sale remains before the High Court.
Commenting on the milestone, Vodacom Group Chief Executive Officer Shameel Joosub said the transaction marks a landmark moment for Vodacom, for Safaricom, and for the communities across East Africa.
“Majority ownership strengthens Vodacom's leadership position while creating new opportunities to expand digital connectivity and financial inclusion across Kenya and Ethiopia. Safaricom's strong performance, driven by its M-Pesa platform, enterprise solutions and expanding Ethiopian operations, will form a key pillar of Vodacom's Vision 2030 strategy,” Shameel said.
According to Treasury Cabinet Secretary John Mbadi, the government's partial divestiture would unlock resources for critical infrastructure while maintaining Kenya's strategic interest in Safaricom.
“Today, we crystallise a portion of that extraordinary value to invest in the roads, the energy systems, the water infrastructure, and the airports that will power Kenya's next chapter of growth,” he said.
He added that the transaction was undertaken lawfully, transparently and with Parliament's approval.
With the acquisition complete, Vodacom will consolidate Safaricom's financial results into its accounts, strengthening its footprint across a contiguous network of high-growth African markets stretching from South Africa through East and Central Africa to Egypt.
The group is expected to provide an update on its medium-term targets when it releases its first-quarter results on July 27, 2026.