The Kenyan government is planning to sell 15 percent of its stake in telecommunication giant Safaricom PLC to Vodafone Kenya Limited.
In a statement on Thursday, December 4, Safaricom announced that it has received a notice of intention by Vodafone Kenya to acquire an additional 6,009,814,200 ordinary shares representing 15 percent.
The company noted that the Kenyan government will sell the shares at a cost of Ksh34.00 per share, totalling to Ksh204.3 billion ($1.6 billion).
“Safaricom PLC has been formally served with a notice of intention regarding a significant Proposed Transaction. We are announcing the intention of Vodafone Kenya Limited ("Vodafone Kenya") to acquire an additional 15% of the issued shares in Safaricom from the Government of Kenya (GOK), representing 6,009,814,200 ordinary shares.
“The acquisition price is KES 34.00 per share, valuing the transaction at Ks204.3 billion (approx. $1.6 billion),” read the statement in part.
Read More
Vodafone, which currently has a 39.9 percent stake in Safaricom, will become the largest shareholder, holding a 55 percent stake.
The Kenyan government and general public investors will, on the other hand, retain a 20percent and 25 percent stake respectively.
“Consequently, the GOK Share Acquisition, in combination with the Vodafone Kenya Acquisition, will result in Vodafone Kenya holding a 55% shareholding in Safaricom.
“The GOK and the general public investors will retain approximately 20% and 25% of Safaricom’s shareholding, respectively,” Safaricom stated.
The deal includes Vodacom Group Limited acquiring Vodafone International Holdings B.V.'s 12.5 percent stake in Vodafone Kenya , resulting in Vodacom owning 100 percent of Vodafone Kenya.
Vodafone Kenya will also be making an upfront payment of Ksh40.2 billion to the Kenyan government in lieu of future dividends on the GOK's residual 20% shareholding.
Further, Safaricom said Vodafone does not intend to launch a takeover offer once the acquisition is completed.
The telecommunication giant said Vodafone will apply to the Capital Markets Authority of Kenya for an exemption.
“Vodafone Kenya does not intend to launch a take-over offer of Safaricom. In this regard, Vodafone Kenya will be applying to the Capital Markets Authority of Kenya (“CMA”) for an exemption under regulation 5(1) of the Take-over Regulations from complying with the mandatory take-over procedures set out in regulation 4 of the Take-over Regulations,” Safaricom stated.
The completion of the transaction is subject to approval by the Kenyan Cabinet, Kenyan National Assembly, CMA, Communications Authority of Kenya, Central Bank of Kenya, COMESA Competition Commission and the East African Community Competition Authority.
Safaricom began operations in 2000 and has pioneered transformative innovations such as M-PESA, which has evolved into a comprehensive digital financial ecosystem.
In July 2024, Safaricom surpassed 50 million customers across its mobile network in Kenya.
In a statement Safaricom said the milestone reflects the trust, loyalty, and partnership of Kenyans over the past two and a half decades.
“We are honoured by the trust that over 50 million Kenyans have placed in us. This milestone reflects the deep connection we have built with Kenyans over the past two and a half decades, and as we approach our silver jubilee, we recommit ourselves to always being a force for good and creating what’s next for our customers,” said Safaricom CEO Peter Ndegwa.
In the year ending March 31, 2025, the telecommunication company recorded a net income of Ksh69.8 billion.
Safaricom said its total revenue rose to Ksh388.7 billion ($3 billion), a 11.2% growth compared to last year.
According to Safaricom, the results were achieved through sustained innovation across the TechCo’s product portfolio, expansion into Ethiopia, and continued support to communities by investing more than Ksh18 billion in Education, Health, Environment, and Economic Empowerment initiatives over the last five years.
