Vodacom has completed its acquisition of an additional 20% effective stake in Safaricom, lifting its ownership to about 55%, just a day after securing a Capital Markets Authority exemption from making a mandatory takeover offer.
The KSh 272 billion (US$2.1 billion) transaction followed the Court of Appeal’s decision to lift a conservatory order, enabling the acquisition of the Government of Kenya’s 15% stake and an effective 5% interest from Vodafone Group.
A significant transaction has taken place in Safaricom Plc, marking one of the largest block trades seen on the Nairobi Securities Exchange(NSE).
Approximately 6 billion Safaricom shares were traded at KSh 34.00 per share as Vodacom acquired the Government of Kenya’s 15% stake in the company through the NSE. The transaction is valued at approximately KSh 204 billion, providing a substantial cash inflow to the Government as the FY2025/26 financial year comes to a close.
In addition, the transfer of the Government’s remaining 12.5% interest in Vodafone Kenya is expected to give Vodacom 100% ownership of Vodafone Kenya. Consequently, Vodacom’s effective shareholding in Safaricom is expected to rise to approximately 55% by the end of June 2026.
Why This Matters
From a market perspective, this is primarily a change in ownership rather than a change in Safaricom’s underlying business fundamentals. The company’s operations, earnings outlook and strategic direction remain unchanged.
However, the transaction has several important implications. It significantly increases Vodacom’s economic interest in Safaricom; and demonstrates the capacity of the NSE to facilitate large institutional transactions.
The Government has receives approximately KSh 204 billion, strengthening its fiscal position as the financial year closes. The transaction may improve ownership clarity within the Safaricom Group structure, although operationally the business continues as before.
For long-term investors, this development should be viewed through the lens of ownership restructuring rather than business performance. The intrinsic value of Safaricom will continue to be driven by its earnings growth, M-PESA ecosystem, mobile data business, and dividend-generating capacity.
Capital Markets Authority(CMA) has granted Vodafone Kenya Limited an exemption from making a mandatory takeover offer in relation to Vodacom Group’s proposed acquisition of 6.01billion Safaricom shares from the Government of Kenya, representing 15% of Safaricom’s issued share capital.
The exemption also covers Vodacom’s proposed acquisition of Vodafone International Holdings’ 12.5% stake in Vodafone Kenya, raising Vodacom’s ownership of Vodafone Kenya from 87.5% to 100% after an internal restructuring.
