Kenya Gov’t to Sell 15% Safaricom Stake to Vodacom in KShs 245 Billion (UGX 6.6 Trillion) Deal Kenya is cashing in on its crown jewel, Safaricom, with a KShs 240.5 billion (UGX 6.49 trillion) deal that hands Vodacom a 55% controlling stake and seeds the country’s Infrastructure and Sovereign Wealth Funds.

Kenya Gov’t to Sell 15% Safaricom Stake to Vodacom in KShs 241 billion (UGX 6.5 Trillion Deal)

The Kenyan government Kenya has officially begun the process of selling a 15 percent stake in Safaricom to South Africa’s Vodacom in a total transaction valued at KShs 241 billion (UGX 6.5 trillion), a move that signals one of the country’s most significant state asset disposals in recent memory.

The announcement, published by Safaricom PLC on December 4, 2025, outlines the full structure of the deal and sets the stage for a major shift in the ownership of East Africa’s most valuable company.

According to the notice, the Government of Kenya will sell 6,009,814,200 Safaricom shares to Vodafone Kenya Limited at KShs 34 per share, a 20 percent premium on the previous day’s market price of KShs 28.20. Using the prevailing exchange rate of 1 KShs = 27 UGX, the offer price translates to UGX 918 per share. The entire block of shares is valued at KShs 204.3 billion, equal to UGX 5.5 trillion, and will reduce the government’s direct stake from 35 percent to 20 percent.

The transaction is part of a broader reorganisation involving both Vodafone and Vodacom. Vodacom Group Limited, which already indirectly owns 39.9 percent of Safaricom, will acquire the remaining 12.5 percent stake in Vodafone Kenya from Vodafone International Holdings B.V. for KShs 68.1 billion (about USD 0.5 billion). This acquisition gives Vodacom full ownership of Vodafone Kenya, and because Vodafone Kenya holds Safaricom shares, Vodacom’s direct and indirect control of Safaricom will rise to about 55 percent.

Once the government’s 15 percent sale is completed, Vodafone Kenya will be considered to have acquired effective control of Safaricom under Kenya’s takeover regulations. Safaricom noted that Vodafone Kenya does not intend to launch a takeover offer and will seek an exemption from the Capital Markets Authority.

Another important component of the restructuring involves the government’s decision to sell its future dividend rights. Vodacom will pay an upfront KShs 40.2 billion (equivalent to UGX 1.09 trillion) to acquire the rights to all dividends that would accrue to the state’s remaining 20 percent shareholding. This payment gives the government immediate cash at a time when debt pressures remain high and fiscal room tight.

The Kenyan government will receive a total of KShs 245 billion, which translates to UGX 6.6 trillion, from the combination of the share sale and the dividend-rights purchase.

The money will form seed capital for Kenya’s Infrastructure Fund and its Sovereign Wealth Fund, two key elements of the country’s long-term economic and investment strategy.

With debt repayments consuming nearly 40 percent of national revenues, the government has increasingly turned to strategic divestitures to stabilise its finances.

Safaricom, long regarded as the crown jewel of the Nairobi Securities Exchange, remains a magnet for global investors including HSBC, Norges Bank and Mobius Capital Partners. Its flagship product, M-Pesa, is deeply woven into East Africa’s daily financial life and remains a key driver of the company’s dominance.

While Kenya moves to reduce its shareholding, Vodacom’s consolidation marks a decisive expansion of its influence in the region.

With the group now set to control a majority stake, the deal could reshape Safaricom’s governance and strategic direction, particularly as it deepens its digital finance and mobile money ambitions across Africa.