VODACOM ACQUIRES ADDITIONAL STAKE IN SAFARICOM FROM GOVERNMENT

Vodacom has bought the Kenyan Government’s 15% share of Safaricom for KSh 244.5 billion. This changes the ownership of Safaricom to Vodacom (55%), Kenyan Government (20%), and Public Shareholders (25%).

The National Treasury said this is a good deal for Kenya. It helps the government meet its financial needs without adding debt or raising taxes. Vodafone paid KSh 34 per share. This is 23.6% more than the average share price over the last six months.

The money from the sale will go into two new national funds: the National Infrastructure Fund and the Sovereign Wealth Fund. It will not be used for daily government spending. This follows the President’s plan to use such money to build long-term assets. Kenya will still own 20% of Safaricom. This means the government will still get dividend payments and can protect national interests.

“This transaction is a shareholder re-alignment that strengthens a key strategic partnership,” said a Treasury spokesperson. “Vodacom’s increased commitment brings unparalleled expertise and capital for Safaricom’s next growth phase, while the premium sale allows Kenya to fund development through investment, not debt. Our retained 20% stake safeguards national interests.”

Safaricom’s current management and Board remain in charge. Only the shareholding has changed.