Vodafone Group has acquired the Kenyan government’s 15% stake in Safaricom for KSh 244.5 billion, lifting its total shareholding in the country’s biggest telecom operator to 55%, TechMoran reported on Thursday.
Under the new structure, the Government of Kenya (GoK) will retain a 20% stake, while public investors hold the remaining 25%.
Treasury said the deal delivers a premium return for the state and strengthens Safaricom’s strategic position in the region. Vodafone paid KSh 34 per share, representing a 23.6% premium to the six-month volume-weighted average price.
The government has earned more than KSh 540 billion in dividends from Safaricom since it was founded. Treasury said selling a portion of its stake will help fund development commitments without increasing taxes or taking on new debt. The state will continue to receive dividends from its remaining holding.
Vodafone Kenya will also make an upfront payment to the government in lieu of future dividends linked to the 20% stake, the ministry added, providing near-term fiscal relief.
Nairobi said proceeds from the transaction will not be used for recurrent expenditure or budget support. Instead, the funds will be channelled into the National Infrastructure Fund and the newly established Sovereign Wealth Fund, in line with President William Ruto’s pledge to ring-fence privatisation proceeds for long-term national investment.
The government said it did not offer the stake to local investors because Vodafone’s proposal delivered the strongest premium. It added that Kenyans remain “substantially represented,” with GoK and the public holding a combined 45%.
Treasury dismissed concerns about national security or operational control, saying the deal represents a shareholder-level change. Safaricom’s management and board will remain responsible for day-to-day operations, and the state will continue to exercise influence as a strategic shareholder in the country’s most valuable company.
