Facing mounting public debt and fiscal pressures, the Kenyan government has agreed to sell a 15% stake in Safaricom to Vodafone Kenya for Ksh 204.3 billion (approximately USD 1.6 billion), a move that marks one of the largest single transactions in the country’s corporate history.
The sale, announced on December 3, 2025, is part of Vodafone Kenya’s plan to increase its holding in Safaricom to 55%, effectively giving the telecom subsidiary control over Kenya’s largest mobile operator.
The government will retain a 20% stake, while the public continues to hold roughly 25%.
Simultaneously, Vodacom Group Limited, Vodafone Kenya’s parent company, is set to acquire Vodafone International Holdings B.V.’s 12.5% stake in Vodafone Kenya, raising its direct ownership in Vodafone Kenya to 100%.
The dual transaction ensures that Vodafone Kenya secures a combined 55% shareholding in Safaricom, including indirect control, without launching a mandatory takeover of the remaining shares.
Vodafone Kenya has applied to the Capital Markets Authority (CMA) for an exemption from the mandatory takeover offer rules, signaling a careful regulatory approach to this historic acquisition.
The Ksh 204.3 billion transaction will involve the government selling 6,009,814,200 shares to Vodafone Kenya at Ksh 34 per share. In addition, Vodafone Kenya will prepay Ksh 40.2 billion to the government for future dividend rights, further easing Kenya’s immediate fiscal strain.
This sale comes at a time when the Kenya government is under pressure to manage rising debt levels and improve fiscal sustainability.
By liquidating part of its Safaricom holding, the government not only raises substantial revenue but also potentially unlocks new foreign investment through Vodafone’s enhanced presence.
Experts suggest the deal could strengthen Safaricom’s strategic outlook while providing the Kenyan government with a much-needed cash injection, helping to bridge budgetary gaps and finance development priorities.
The transaction is subject to approval from various regulatory authorities, including the Cabinet, National Assembly, CMA, Communications Authority of Kenya, Central Bank of Kenya, as well as regional competition regulators.
For investors, Vodafone Kenya’s move signals a new chapter in Kenya’s telecom sector, as global telecom giants consolidate their influence in East Africa’s most lucrative market.
