Vodacom is holding talks with the Kenyan government over the possibility of buying part of the state’s 35 percent stake in Safaricom, potentially tightening its grip on East Africa’s most profitable telecoms firm.
Sources who spoke to Bloomberg say the Johannesburg-based operator, which already controls roughly 39.93 percent of Safaricom, is weighing an expansion of its shareholding, though nothing has been finalised.
These conversations are unfolding against the backdrop of Kenya’s ongoing debate about whether Safaricom should be split into three separate units covering telecommunications, mobile money and infrastructure. Treasury Cabinet Secretary John Mbadi revealed in August that this restructuring is still under review, a move that could see the state dilute its holdings.
Vodacom, however, has pushed back firmly against any proposal to carve M-Pesa away from Safaricom. During a November 11 earnings call, CEO Shameel Joosub argued that the financial services arm is too intertwined with the telecom business to stand alone and is set to become even more integrated as customer-focused offerings expand.
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The latest talks coincide with Vodacom’s fresh partnership with Starlink, announced on November 12. The deal will bring satellite backhaul into Vodacom’s network to bolster broadband speeds, strengthen rural coverage and connect remote areas such as schools, clinics and underserved communities. Vodacom will also act as an authorised reseller for Starlink’s equipment and services across Africa.
Joosub said the alliance is central to Vodacom’s Vision 2030 ambition of bringing every African online. By blending Starlink’s low-orbit satellites with its existing networks, Vodacom hopes to create more reliable and far-reaching connectivity options. Packages will be tailored for affordability and will cater to sectors like mining, agriculture, tourism and retail.
Starlink’s vice president for operations, Chad Gibbs, highlighted that the company is already active in 25 African markets and sees the partnership as a way of widening access even further.
The agreement comes after a frosty start between Safaricom and Starlink. In mid-2024, Safaricom opposed licensing independent satellite providers in Kenya, but later softened its stance, with CEO Peter Ndegwa acknowledging that satellite partnerships will be essential in the long term.
