In a public notice issued on Thursday, Safaricom confirmed it had received a formal Notice of Intention from Vodafone Kenya to acquire 6,009,814,200 ordinary shares at Sh34 each. The proposed transaction, valued at Sh204.3 billion (USD 1.6 billion), would be one of the largest share transfers in Kenya’s corporate history.
If approved, Vodafone Kenya’s shareholding in Safaricom would rise to 55 per cent. However, the telco stressed that “Vodafone Kenya does not intend to launch a takeover offer of Safaricom,” and will seek an exemption from mandatory takeover rules typically triggered when an investor crosses the effective control threshold.
Safaricom also disclosed that the government share purchase is linked to a separate internal restructuring within the Vodafone group. Vodacom Group Limited—already the 87.5 per cent majority shareholder in Vodafone Kenya—plans to acquire the remaining 12.5 per cent stake from Vodafone International Holdings B.V. in a Sh68.1 billion (USD 0.5 billion) transaction. This restructuring will give Vodacom full ownership of Vodafone Kenya and an additional 4.99 per cent indirect stake in Safaricom.
Once both transactions conclude, Safaricom’s ownership structure will shift to Vodafone Kenya/Vodacom Group at 55 per cent, the Government of Kenya at 20 per cent, and public investors at 25 per cent. The acquisitions are interdependent and expected to be completed concurrently.
As part of the agreement, Vodafone Kenya will make an upfront payment of Sh40.2 billion to the government, covering future dividends expected from the state’s remaining 20 per cent shareholding—a move analysts say provides the Treasury with immediate cash flow while securing predictable returns for Vodafone Kenya.
Safaricom emphasised that the multi-layered deal is still subject to approvals from the Cabinet, National Assembly, CMA, CAK, CBK, COMESA, and the East African Community Competition Authority. Investors were urged to trade cautiously until all regulatory steps are completed.
Further disclosures will be issued through Safaricom’s website and official regulatory filings.
