Vodacom Eyes Majority Stake in Kenya’s Safaricom as Government Prepares Major Privatization
South African telecom giant Vodacom Group has publicly expressed its keen interest in acquiring a portion of the Kenyan government’s significant shareholding in Safaricom. This potential transaction signals what could become Kenya’s largest privatization initiative in nearly two decades, poised to reshape the ownership structure of East Africa’s most valuable company and bolster Vodacom’s influence in the vital Kenyan market.
Kenya’s Privatization Drive and Vodacom’s Strategic Ambition
The Kenyan Treasury is actively planning to divest an undisclosed portion of its substantial 34.9% stake in Safaricom, the nation’s leading telecoms operator. This strategic sale is anticipated to conclude before the end of the 2025/26 fiscal year. The primary objective for the Kenyan government is to generate approximately KES 149 billion (equivalent to $1.1 billion). This crucial financial injection aims to alleviate mounting pressure on public finances and avoid imposing new taxes within an already strained economy, a key fiscal strategy for Nairobi.
Vodacom, which already holds a significant 39.9% stake in Safaricom in conjunction with its UK parent company, Vodafone, views this upcoming privatization as a pivotal opportunity. The Johannesburg-listed operator has communicated to its investors that it expects to be formally consulted once the Kenyan government officially initiates the sale process. Acquiring additional shares from the government could potentially grant Vodacom majority control over Safaricom, a highly coveted position in the dynamic East African tech and telecom landscape. Vodacom’s chief executive, Mohamed Josub, underscored the company’s proactive and opportunistic stance during a recent second-quarter earnings call, stating, “We look at any market where our partners want to sell.” This statement clearly articulates Vodacom’s readiness to capitalize on such strategic divestment opportunities across the continent.
The prospect of Vodacom securing a larger, potentially controlling, share in Safaricom represents a pivotal moment for both companies and the broader African telecom sector. For Kenya, it’s a critical financial maneuver aimed at stabilizing public finances, while for Vodacom, it’s a strategic play to solidify its market leadership and influence in a key regional economy. This high-stakes privatization is set to redefine the competitive landscape and governance of one of Africa’s most successful technology and mobile money companies.
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