Vodafone Kenya has announced a bold move to acquire a 15% stake in Safaricom, Kenya’s leading telecom company, from the government in a transaction valued at over KSh 200 billion (£1.2 billion).
Under Kenya’s Capital Markets Act, Vodafone intends to purchase 600,814,200 ordinary shares from the Treasury, increasing its current 40% holding to 55% and securing majority control of the company.
Safaricom, which serves over 65% of Kenya’s mobile subscribers and is the driving force behind innovations like M-Pesa, has long been regarded as a cornerstone of the nation’s economic landscape.
The deal will reduce the government’s stake from 35% to 20%, providing a significant capital injection at a time when Kenya faces fiscal pressures from debt obligations and infrastructure development needs.
Following the transaction, which will be financed through new term loan facilities, the government will retain a 20% stake in Nairobi-based Safaricom, while public investors listed on the Nairobi Securities Exchange will hold the remaining 25%.
Vodafone Kenya noted that the acquisition is subject to regulatory approvals, including confirmation from the Capital Markets Authority that the company is exempt from making an offer to minority shareholders.
