Vodafone Group has acquired the Kenyan government’s 15% stake in Safaricom for approximately $1.63 billion, raising its total ownership to 55%, while the Government of Kenya (GoK) retains 20% and public investors hold 25%.
The deal is one of Kenya’s largest privatisation transactions and was concluded at a premium price of $0.23 per share, representing a 23.6% premium on the six-month volume-weighted average price.
The deal injects substantial funds into Kenya’s treasury while Vodafone brings global telecom experience, technological expertise, and capital for Safaricom’s next hase of growth.
The Kenyan government has already earned over $3.6 billion in dividends from Safaricom since its inception and the selling 15% of its stake will help it fund development projects without raising taxes or taking on new debt. The government also retains a 20% strategic stake, ensuring ongoing dividend income, and will receive an upfront dividend compensation from Vodafone in lieu of future dividends on the remaining stake, providing short-term fiscal stability.
The proceeds will not be absorbed into recurrent budgets but will instead serve as seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund, ensuring that the funds are invested in long-term wealth-creating national assets.
Government and public ownership together account for 45% of the company and the transaction won’t compromise national security or operational control. Safaricom’s management and board will continue to run day-to-day operations, while the GoK retains influence as a strategic shareholder.