A significant transformation has come to Kenya's business scene as the South African telecommunication behemoth Vodacom finalized its acquisition of a 55% share in Safaricom, which is the majority control of the region's most valuable telecom and fintech company.
This historic deal, which has a value of around KSh272 billion, involved Vodacom purchasing a 20% stake, of which 15% was from the Kenya government and the other 5% from Vodafone, thus making the firm Safaricom's majority shareholder.
This means that the Kenyan government now owns 20% of Safaricom, down from its previous 35% share, while the remaining 25% is held by shares that are publicly traded on the Nairobi Securities Exchange. The move is likely to influence Safaricom's strategic decisions going forward, especially as it looks to leverage its telecom, digital payments and financial services offerings to reach more African markets via M-Pesa and its Ethiopian operation.
On the one hand, transaction proponents believe that new investment will be unlocked, regional expansion strengthened and innovation accelerated; on the other hand, opponents ask whether Kenya has relinquished control of one of its most profitable and strategically important enterprises to a great extent.
The deal comes after several months of legal and regulatory challenges to the sale, which were finally lifted in late June 2026 when Kenya's Court of Appeal authorized completion of the deal.
Many Kenyans are now discussing the issue beyond shareholding ratios and pondering over a bigger question: whether Safaricom will continue to be the most cherished corporate lion in Kenya under foreign majority ownership, or whether the country's telecom giant has stepped into a new era altogether.
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