Safaricom Confirms Vodafone’s Move to Buy Government’s 15% Stake
Safaricom has confirmed an ownership restructuring that could see Vodafone Kenya Limited acquire the Government of Kenya’s 15 per cent stake in the telecom firm for Sh244.5 billion.
In a public announcement on Thursday, December 4, 2025, Safaricom, through Company Secretary Linda Wambani, said it had received a Notice of Intention from Vodafone Kenya indicating plans to purchase 6.01 billion ordinary shares held by the government at Sh34 per share, representing a 21 per cent premium over Safaricom’s closing price of Sh28.20.
“The shareholders of Safaricom PLC (“Safaricom”) are advised that on 03 December 2025, Safaricom was served with a notice of intention by Vodafone Kenya Limited (“Vodafone Kenya”) not to make a mandatory takeover offer to the shareholders of Safaricom PLC (“Notice of Intention”).
The Notice of Intention notifies Safaricom that Vodafone Kenya has an intention to acquire an additional 6,009,814,200 ordinary shares (the “Additional Shares”) in Safaricom from the Government of Kenya (“GOK”), representing a 15% stake in Safaricom (the “GOK Share Acquisition”),” read the notice.
The deal forms part of a broader internal restructuring consolidating Vodafone’s entire shareholding under Vodafone Kenya. As part of the plan, Vodacom Group Limited, currently holding 87.5 per cent of Vodafone Kenya, will acquire the remaining 12.5 per cent from Vodafone International Holdings, giving it full control of Vodafone Kenya and an indirect 55 per cent stake in Safaricom.
Under the proposed structure:
Vodafone Kenya will acquire the Government’s 15 per cent stake in Safaricom
Vodacom Group will take full control of Vodafone Kenya
The Government will retain 20 per cent direct ownership
Public investors will hold approximately 25 per cent
Vodafone Kenya will also make an upfront payment of Sh40.2 billion to the government for future dividends on its remaining 20 per cent stake. Despite gaining control, Vodafone Kenya said it does not intend to make a mandatory takeover offer, applying instead to the Capital Markets Authority (CMA) for an exemption.
“Vodafone Kenya does NOT intend to launch a takeover 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,” read the announcement.
Completion of the transaction is subject to approvals from the Cabinet, National Assembly, CMA, Communications Authority, Central Bank, COMESA Competition Commission, and the East African Community Competition Authority.
The government will channel the proceeds into the Infrastructure Fund, targeting key projects in energy, roads, water, and airports. Vodafone Kenya also confirmed that Safaricom will remain listed on the Nairobi Securities Exchange, ensuring continued market access for investors.