Safaricom announced on Wednesday that Vodafone Kenya will purchase an additional 15% stake from the government for about $1.6 billion.
The company said the deal will not trigger a takeover bid, preserving the government’s 20% holding and the public’s 25% share. Vodafone Kenya’s ownership will rise to 55%, strengthening its position in the region’s most valuable telecommunications operator.
Safaricom added that Vodafone Kenya will also acquire rights to future dividends through an upfront payment of 40.2 billion shillings.
The payment replaces future dividend income expected from the government’s remaining 20% stake in the company. Safaricom noted that the buyer will pay 34 shillings per share, offering a premium over Wednesday’s market close of 28.20 shillings.
The valuation underscores investor confidence in Safaricom, which remains a pillar of Kenya’s digital economy and mobile money ecosystem. Finance Minister John Mbadi first signalled the government’s intention to reduce its Safaricom stake in May 2025.
Kenya previously sold a 25% shareholding through its landmark initial public offering in 2008, expanding public participation in the company. The latest transaction marks a new chapter for Safaricom as it deepens its relationship with Vodafone Kenya and recalibrates state involvement.
