Nairobi, Kenya — A major shift in the ownership of Kenya’s largest telecommunications company is changing the balance of power at Safaricom PLC.
Vodacom Group has completed the acquisition of an additional 20% effective stake in Safaricom, increasing its ownership from approximately 35% to 55% and giving the South African telecommunications group majority control of the Kenyan company. The transaction was completed on June 30, 2026.
The deal involved Vodacom acquiring a 15% stake from the Government of Kenya for KSh204 billion and an additional effective 5% from Vodafone for KSh68 billion.
The new ownership structure means Vodacom now holds 55% of Safaricom, the Kenyan government retains 20%, while the remaining 25% is held by public investors.
Why Vodacom’s 55% stake matters
The increase gives Vodacom majority control over one of Africa’s most important telecommunications and financial-services businesses.
As the controlling shareholder, Vodacom will have greater influence over Safaricom’s strategic direction, corporate governance, investment priorities and long-term growth plans.
Safaricom will also now be consolidated into Vodacom’s financial results, reflecting the change from an associate to a controlled subsidiary.
The development strengthens Vodacom’s position across Africa and gives it greater exposure to Safaricom’s highly successful mobile-money business, M-PESA.
What happens to the Kenyan government?
The Government of Kenya is no longer Safaricom’s largest shareholder, but its 20% stake still makes it a significant shareholder.
The government also retains an important role through regulation, particularly because Safaricom operates in telecommunications and financial services.
The reduction from 35% to 20%, however, represents a major change from the previous ownership structure.
The government has effectively exchanged part of its ownership in one of Kenya’s most valuable companies for billions of shillings in proceeds from the transaction.
What does this mean for M-PESA?
For ordinary Kenyans, one of the biggest questions is what Vodacom’s increased control will mean for M-PESA.
M-PESA has grown from a Kenyan mobile-money service into one of Africa’s most successful digital financial platforms.
Vodacom’s increased ownership could provide opportunities for greater investment, technological development and expansion of Safaricom’s financial-services ecosystem.
Vodacom itself has highlighted the importance of financial services to its broader growth strategy following the Safaricom transaction. Reuters reported that financial services contributed more than 22% of Vodacom’s group service revenue following the acquisition.
For customers, however, majority ownership does not automatically mean changes to M-PESA services, prices or customer accounts. Such changes would depend on Safaricom’s business decisions and applicable regulatory requirements.
Will Safaricom remain a Kenyan company?
Yes.
Although Vodacom is a South African company and now holds the majority stake, Safaricom remains a Kenyan publicly listed company.
Its shares continue to trade on the Nairobi Securities Exchange, and 25% of the company remains in public hands.
Safaricom also continues to operate under Kenyan laws and regulations, including oversight from Kenya’s telecommunications and financial regulators.
A bigger opportunity for Vodacom
The Safaricom acquisition gives Vodacom a significantly larger presence in East Africa’s technology and financial-services market.
The company has already raised its medium-term growth ambitions following the transaction, citing the stronger contribution expected from Safaricom and its financial-services business.
For Vodacom, Safaricom provides access to a highly profitable telecoms operation, a large customer base and the M-PESA ecosystem.
For Safaricom, the relationship could bring access to greater financial resources, technology and expertise from a larger pan-African telecommunications group.
What should Kenyans watch next?
The key question now is how Vodacom uses its new controlling position.
Kenyans will be watching for developments involving:
- M-PESA and digital financial services
- Safaricom’s network and technology investments
- 5G and future connectivity
- New digital products and services
- Regional expansion
- Customer pricing and service quality
- Safaricom’s leadership and corporate strategy
The change in ownership could ultimately accelerate Safaricom’s expansion beyond traditional mobile telecommunications and deepen its role as a technology and financial-services company.
The bigger picture
Vodacom’s move to 55% marks one of the most significant changes in Safaricom’s ownership since the company was listed on the Nairobi Securities Exchange.
The Government of Kenya remains an important shareholder with 20%, while public investors retain 25%. But with a 55% stake, Vodacom now has the strongest influence over Safaricom’s future direction.
For millions of Kenyans who use Safaricom every day, the immediate services may remain largely unchanged. The bigger impact will likely emerge over time as Vodacom integrates Safaricom more closely into its wider African strategy.
The question is no longer whether Vodacom will influence Safaricom — it is how far that influence will go.
Sources: Vodacom, Vodafone Group, Reuters and Safaricom-related reporting.
