Kenya to sell 15% Safaricom stake to Vodacom in $1.6bn deal

Safaricom said late Wednesday, 3 December, that Kenya is selling a 15% stake in the telecom operator to South Africa's Vodacom in a deal worth about $1.6bn, as the government seeks to raise cash by offloading some state assets.

By Duncan Miriri, George Obulutsa

4 Dec 2025

Pedestrians walk outside the Safaricom mobile phone customer care centre during the launch of its 5G internet service in the central business district of Nairobi, Kenya, on 27 October 2022. Reuters/Monicah Mwangi

Facing high public debt, limited room to raise taxes, and annual debt repayments that absorb 40% of government revenues, president William Ruto's administration has increasingly turned to asset sales to bolster its finances.

Safaricom, Kenya's biggest company by market capitalisation, accounts for a lion's share of daily trading volumes on the Nairobi Securities Exchange.

Vodacom, which already owns 39.9% of Safaricom through Vodafone Kenya, will pay S34 per share, a 20% premium to the share's closing price of S28.20 on Wednesday, 3 December

The purchase will lift Vodacom's stake to 55%, giving the South African group effective control of Safaricom, widely known for its M-Pesa mobile money service.

Vodacom does not intend to launch a takeover offer once the acquisition is completed, Safaricom said in a statement late on Wednesday, 3 December, adding that it will apply to the market regulator for an exemption.

The Kenyan government, which currently holds 35% of Safaricom, will see its stake reduced to 20%.

Vodacom will also buy the rights to future dividends on the state's remaining shares, paying the government an upfront S40.2bn, Safaricom said.

Safaricom is held by a range of offshore funds and investors, including HSBC, Norges Bank and Mobius, according to LSEG-compiled data.