The Kenyan government has reduced its shareholding in Safaricom to 15 per cent following the completion of the sale of a 20 per cent stake to South Africa’s Vodacom in a deal worth Sh204.3 billion.
The transaction, which was first announced in December 2025, was delayed by legal challenges filed by politicians and civil society groups who questioned the valuation used in the sale. However, the Court of Appeal recently dismissed the final challenge, paving the way for the deal’s completion.
The sale significantly strengthens Vodacom’s position in Safaricom, increasing its ownership stake to 55 per cent and giving the South African telecommunications giant greater influence over the company’s operations and strategic direction.
The transaction sparked intense public debate, with critics arguing that the government had sold the shares below their market value. Among those who publicly opposed the deal was Kiharu MP Ndindi Nyoro, while several activist groups sought to block the transaction through the courts.
Despite the criticism, Treasury Cabinet Secretary John Mbadi defended the sale, saying the valuation reflected prevailing market conditions and that the proceeds would help the government finance key national priorities.
“The transaction was conducted at a fair market value, and the funds raised will support the government’s development agenda and other critical expenditure needs,” Mbadi said while defending the sale.
The completion of the transaction marks a major shift in Safaricom’s ownership structure, with the Kenyan government relinquishing a significant portion of its stake in one of East Africa’s most profitable companies.
