Vodacom's Safaricom Majority
Vodacom secures majority control of Safaricom after €1.8B deal, fully consolidating East African leader
Key Points
Two-part acquisition: Vodacom bought 15% from the Government of Kenya for KES 204 billion (€1.36 billion) and an effective 5% from Vodafone for KES 68 billion (€0.45 billion), valuing Safaricom at roughly €1.81 billion (approximate total).
Kenya’s Court of Appeal stayed the high court conservatory order on June 26, allowing the deal to proceed, but the court did not rule on whether the sale is lawful; the underlying constitutional petitions remain before the High Court and are unresolved.
Safaricom will be fully consolidated by both Vodacom and Vodafone under IFRS, moving from equity accounting as an associate to full consolidation, which is expected to materially change Vodacom’s reported group numbers; Vodacom reported EBITDA of R63 billion in 2026 and Safaricom reported EBITDA of R29 billion.
Opposition leader Kalonzo Musyoka warned that closing the deal while constitutional petitions remain unresolved is risky and not an official approval, underscoring political and legal sensitivities around the transaction.
Vodafone completed the transfer of its remaining 12.5% stake in Vodafone Kenya Limited to Vodacom, effectively converting to an additional 5% stake in Safaricom.
Vodacom Group completed a €1.81 billion deal on June 30, 2026, to take majority control of Safaricom PLC — the first time the Kenyan telecom giant has been under majority foreign ownership since its 2008 listing. The transaction lifts Vodacom's stake from 35% to 55%, after it bought 15% from the Kenyan government and an effective 5% from parent company Vodafone. ITWeb Africa reported that the deal, worth R35 billion, closed following a critical court ruling that cleared the final legal hurdle.
Vodacom CEO Shameel Joosub called it a "landmark moment," saying the deal unlocks "new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia." But opposition leaders and constitutional petitioners warn the legal fight is far from over.
A Court Ruling Unlocked the Final Barrier
The deal almost didn't happen. On May 18, 2026, a Kenyan High Court judge issued a conservatory order freezing the sale. Two activists — Tony Gachoka and Professor Frederick Ogola — had filed constitutional petitions arguing the government had no legal right to sell the shares for revenue. The sale was stuck. Then, on June 26, the Court of Appeal lifted the freeze. The judges ruled that "public interest compellingly demands" the transaction proceed, according to TechAfrica News.
The court did not rule on whether the sale is actually lawful. The underlying constitutional case remains before the High Court. Opposition leader Kalonzo Musyoka, who is also lead counsel for the petitioners, was blunt. "The lifting of that order is not a green light," he said. "It is not judicial endorsement of the transaction." He warned buyers plainly: "caveat emptor — let the buyer beware."
How the Deal Was Structured and What It Cost
Vodacom split the purchase into two parts. It paid KES 204 billion (€1.36 billion) to the Kenyan government for a 15% stake — roughly 6 billion shares at KES 34 each on the Nairobi Securities Exchange. It then paid KES 68 billion (€0.45 billion) to Vodafone for an effective 5% stake, acquired by raising its ownership of Vodafone Kenya Limited from 87.5% to 100%. The total price: KES 272.3 billion, or about €1.81 billion, according to Vodafone.
The Kenyan government keeps a 20% stake and the company continues to trade on the Nairobi Securities Exchange. The deal also includes an upfront payment of KES 40.2 billion to the government in place of future dividend rights. National Treasury Cabinet Secretary John Mbadi backed the sale as part of Kenya's 2025/26 revenue strategy to fund the National Infrastructure Fund.
Safaricom's Numbers Will Now Reshape Vodacom's Books
The financial impact is massive. Under international accounting rules known as IFRS, Safaricom will move from being counted as an "associate" — where only a share of profits is recorded — to a fully consolidated subsidiary. That means Safaricom's entire revenue and costs flow into Vodacom's financial statements. Vodacom reported an EBITDA of R63 billion in 2026. Safaricom's own EBITDA was R29 billion, according to ITWeb Africa. Adding that in will materially change Vodacom's reported numbers overnight.
Financial analysts describe it as an "accounting goldmine" for Vodacom. But they also warn of a "litigation overhang." If Kenya's High Court eventually rules the sale unconstitutional, it could force a reversal — creating serious market instability. Vodacom plans to update investors on its new medium-term targets on July 27, 2026. The company also sees major growth potential in scaling M-Pesa, Safaricom's mobile money platform, in Ethiopia, which recently added 14 million customers.
Kenya's Government Cheers the Deal; Critics Call It a National Security Risk
The Kenyan government framed the sale as smart fiscal policy. Parliament's National Assembly unanimously approved the share sale in March 2026 to raise revenue for infrastructure. The Treasury argued it would attract foreign capital and help stabilize the Kenyan shilling. Vodacom, for its part, says majority ownership strengthens its East Africa strategy and its "Vision 2030" goals, according to MarketScreener.
Critics see it very differently. Musyoka and the petitioners argue that selling Kenya's most profitable state asset hands control of critical communications and financial infrastructure to a foreign-controlled company. They say the constitution only allows the government to raise money through taxes and borrowing — not by selling off strategic public companies. The High Court will have the final say, and its ruling could still upend everything.
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