Government Cuts Safaricom Stake to 20% After Sale to Vodafone Kenya
Safaricom remains a publicly listed company on the Nairobi Securities Exchange, with its shares continuing to be traded by local and international investors.
Photo: Courtesy.
By Robert Mutasi
The Kenyan government’s sale of a 15 percent stake in Safaricom has reshaped the ownership of East Africa’s largest telecommunications company, making Vodafone Kenya Limited the majority shareholder.
The transaction, one of the most significant ownership changes in Safaricom’s history, has sparked debate over the government’s reduced stake while prompting questions from customers and investors about who now controls the company.
Following the completion of the sale, Vodafone Kenya now owns 55 percent of Safaricom, up from about 40 percent previously. The Government of Kenya’s shareholding has fallen from 35 percent to 20 percent, while institutional and retail investors continue to hold the remaining 25 percent through the Nairobi Securities Exchange.
The revised ownership structure leaves Vodafone Kenya as the company’s largest shareholder, strengthening its influence over one of the region’s most profitable listed firms.
Before the transaction, the Kenyan government was one of Safaricom’s largest shareholders alongside Vodafone Kenya, with the public maintaining a quarter of the company’s shares through the stock exchange.
The sale represents a major shift in the balance of ownership, with the state relinquishing a significant portion of its equity while Vodafone Kenya consolidates its position as the controlling shareholder.
Despite the reduction in its stake, the government has maintained that it will continue to play a strategic role in the telecommunications giant.
Officials say the sale does not diminish the state’s influence over matters of national interest involving Safaricom, which remains a key player in Kenya’s digital economy through its mobile network, financial technology services and digital infrastructure.
Safaricom remains a publicly listed company on the Nairobi Securities Exchange, with its shares continuing to be traded by local and international investors.
The ownership restructuring comes as the company continues to expand its telecommunications and financial services business while maintaining its position as one of the largest contributors to Kenya’s economy and capital markets.
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