Regional competition regulators have launched formal reviews into a proposed transaction that would hand majority control of Safaricom PLC to South Africa’s Vodacom Group, raising questions over market concentration in telecommunications and mobile financial services.
The East African Community Competition Authority and the COMESA Competition and Consumer Commission said they are examining whether the deal could significantly reduce competition or trigger broader public interest concerns across their respective jurisdictions.
The transaction centres on the acquisition of a 15% stake in Safaricom by Vodafone Kenya Limited, a Vodacom subsidiary, alongside an internal reorganisation of shareholdings within Vodafone International Holdings B.V. Regulators will assess whether the changes could entrench Safaricom’s dominance, particularly in mobile money and digital services, or weaken competitive dynamics within the EAC and the wider COMESA market.
If completed, Vodacom’s interest in Safaricom would increase from 40% to approximately 55%, giving the group effective control of Kenya’s most profitable listed company. The Government of Kenya, which is divesting the 15% stake, would retain a 19.99% shareholding following the transaction.
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Safaricom, which is listed on the Nairobi Securities Exchange, operates in both Kenya and Ethiopia and plays a central role in mobile telecommunications, broadband, and mobile financial services through platforms such as M-Pesa.
Although the parties involved have argued that the transaction does not raise competition concerns and have framed it as a strategic consolidation, regulators have invited submissions from competitors, suppliers, and customers, signalling heightened scrutiny of the proposed shift in control.
The deadline for submissions is February 13, 2026 for COMESA and February 16, 2026 for the EAC.
