Transaction Date: 30 June 2026

After months of anticipation, Vodacom Group (a subsidiary of Vodafone) has officially completed its acquisition of an additional 20% stake in Safaricom, making it the majority owner with a 55% shareholding. The deal also saw the Kenyan government’s stake drop to 20%, while regular shareholders like you retain the remaining 25% .

This transaction reshapes the control of Kenya’s most successful company. Here’s what it means for you and the country.

Why the CMA Exemption?

Normally, when an investor crosses a certain ownership threshold, they are legally required to make a mandatory takeover offer to all minority shareholders. However, Vodacom applied for, and received, an exemption from Kenya’s Capital Markets Authority (CMA) .

Why? The transaction was structured as an acquisition of a specific block of shares from the government, not an attempt to buy out public investors. This meant Vodacom was not required to make an offer to you. Your shares continue trading as usual on the Nairobi Securities Exchange, and your ownership stake was not diluted .

The Government’s Dividend Sale

A notable part of the deal involves the government’s future dividends. The State sold not only its 15% stake but also effectively sold the rights to future dividends on the 20% stake it still holds for an upfront payment .

This means the government has chosen to receive cash now, rather than collect these dividends annually in the future. While this provides immediate funds for infrastructure, it means the Kenyan treasury—and by extension, the public—will miss out on this future income stream from its remaining shares .

The Good, The Bad, and The Ugly

The Good:

• Strategic Strength: With Vodacom in full control, Safaricom can make faster, more strategic decisions. This could lead to better integration with Vodacom’s pan-African operations, potentially benefiting shareholders through growth and expansion .
• Your Shares Are Safe: Thanks to the CMA waiver, you keep your shares, and Safaricom remains listed on the NSE .

The Bad:

• Loss of a National Champion: Kenya has officially ceded majority control of its most iconic and successful company to a foreign entity . While the government says “Kenya remains its home,” decisions will now be made with the best interests of the Vodacom Group in mind, not just Kenya’s .

The Ugly:

• Short-Term Thinking: The government’s sale of future dividends looks like a classic case of cashing out early for political gain or to plug a budget hole. Is it a good idea? For a nation facing high debt, the immediate cash injection is tempting. However, it sacrifices a long-term, reliable income stream for a one-time payment . Many Kenyans will see this as politicians choosing quick cash over the country’s future financial security.

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In short: For regular shareholders, it’s business as usual—you keep your shares, and Safaricom is now part of a larger African powerhouse. The real question is whether Kenya has traded a steady future income for a short-term gain.