Major Ownership Change: Vodacom Becomes Majority Shareholder (2026)

Major Ownership Change: Vodacom Becomes Majority Shareholder of  Safaricom

On June 30, 2026, Vodacom Group completed one of the largest telecommunications transactions in East African history by acquiring an additional 20% effective stake in Safaricom PLC, increasing its ownership from 35% to 54.94%. The transaction, valued at approximately KES 272 billion (US$2.1 billion), marked a significant shift in the ownership and governance of Kenya's largest telecommunications company.

The acquisition consisted of two key components:

• 15% stake from the Government of Kenya, acquired through a block trade on the Nairobi Securities Exchange (NSE) at KES 34 per share, involving approximately 6 billion shares worth KES 204.3 billion.

• An effective 5% stake from Vodafone Group, transferred through Vodafone Kenya Limited.

The deal had initially been delayed by a constitutional petition. However, on June 26, 2026, the Court of Appeal lifted the blocking order, noting that continued delays were costing the Kenyan government an estimated KES 70 million per day in lost economic value. Shortly afterward, the Capital Markets Authority (CMA) granted Vodacom an exemption from making a mandatory takeover offer to minority shareholders, allowing the acquisition to proceed.

Updated Ownership Structure

Following the transaction, Safaricom's ownership became approximately:

• Vodacom Group – 54.94% (Majority Shareholder)

• Government of Kenya – 20%

• Public and Institutional Investors – Approximately 25.06%

Although Vodacom now holds majority ownership, Safaricom remains a publicly listed company on the Nairobi Securities Exchange, maintaining minority shareholder participation and continuing to operate under Kenyan corporate governance regulations.

What This Means for Vodafone

Since Vodafone Group remains the majority shareholder of Vodacom Group, Vodafone indirectly strengthens its influence over Safaricom through Vodacom. While Safaricom continues to operate under its own Board of Directors and management team, Vodacom now has majority voting rights and financial control.

As a result, Safaricom will no longer be accounted for as an associate company in Vodacom's financial statements. Instead, it will be fully consolidated under International Financial Reporting Standards (IFRS). This is a substantial financial milestone because Safaricom generated approximately R29 billion in EBITDA during FY2026, compared with Vodacom Group's R63 billion EBITDA, making Safaricom one of the group's most valuable assets.

Strategic Importance of the Acquisition

The acquisition strengthens Vodacom's position as one of Africa's leading telecommunications groups by:

• Gaining majority control of East Africa's largest telecom operator.

• Expanding leadership in mobile money through M-PESA.

• Increasing regional investment in 4G, 5G, cloud services, fintech, and artificial intelligence.

• Enhancing long-term revenue growth through Safaricom's operations in Kenya and Ethiopia.

• Improving financial performance through the consolidation of Safaricom's earnings into Vodacom Group's accounts.

Although the Government of Kenya reduced its shareholding to 20%, it negotiated a KES 40.2 billion dividend top-up linked to its remaining ownership, ensuring continued financial participation in Safaricom's future success.