Vodacom Takes Control of Safaricom After COMESA Approval

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Vodacom Group has cleared a major regulatory hurdle to gain majority control of Safaricom, Kenya’s largest telecom operator. The Common Market for Eastern and Southern Africa (COMESA) Competition and Consumer Commission approved Vodacom’s plan to raise its stake from 35 % to 55 %, in a deal valued at Sh272 billion.

The approval marks a significant shift in Kenya’s telecom landscape, giving Vodacom effective control over Safaricom’s operations, strategy, and financial decisions. It also reflects growing regional coordination on large-scale cross-border corporate transactions.

How the Deal Works

The Sh272 billion transaction has two main parts:

  • Vodacom will buy 15 % of Safaricom from the Kenyan government, at a price above the prevailing market rate.

  • Vodacom will acquire 5 % from its parent company, Vodafone Group, reorganizing its local holdings.

After the transaction, Vodacom will own roughly 55 % of Safaricom, the government will hold about 20 %, and public and institutional investors will own the remaining 25 %. The deal also includes an upfront payment for dividend rights on the government’s remaining shares, providing immediate fiscal benefit to the Treasury.

Why It Matters

For Vodacom, the move changes Safaricom from an associate investment into a consolidated subsidiary. This gives the South African telecom giant greater control over governance, strategic planning, and revenue streams. Vodacom has emphasized that the acquisition is part of a broader strategy to expand mobile and financial services across Africa, leveraging Safaricom’s strong brand and market position.

Safaricom dominates Kenya’s mobile market and is particularly known for M-Pesa, the mobile money platform that has transformed financial access across the region. By increasing its stake, Vodacom secures influence over one of Africa’s most profitable and innovative telecom businesses.

Implications for Kenya

The government’s sale provides a substantial short-term cash boost, which could fund infrastructure projects or other national priorities. However, critics warn that reducing the government’s stake in such a profitable company could limit future revenue streams and dividends, raising questions about long-term fiscal planning.

Regional Significance

This transaction is also a litmus test for cross-border regulatory cooperation. COMESA’s approval indicates confidence that the deal will not substantially reduce competition across member states. The East African Community Competition Authority and other regional regulators are also expected to review the deal before it is fully completed.

What’s Next

While COMESA has cleared the path, final implementation depends on additional approvals from Kenyan and regional authorities. Safaricom’s shareholders and the wider market will closely watch how the transition affects governance and operational decisions in the months ahead.

The deal positions Vodacom to consolidate its footprint in East Africa and signals a potential wave of investment and consolidation in the region’s telecom sector. For Safaricom, it means a new era under majority foreign ownership, with both opportunities for growth and questions about national control over a critical sector.

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