Safaricom’s future chief executive could be chosen by South Africa’s Vodacom if the company succeeds in acquiring the Kenyan government’s 15% stake in the telecoms giant, according to details contained in a new shareholder agreement. The proposed transaction would increase Vodacom’s shareholding to 55%, giving it effective control of Safaricom and making the company a subsidiary of the broader Vodafone Group structure.
Documents filed by Vodafone Group with the US Securities and Exchange Commission indicate that Safaricom’s board would be required to appoint a CEO from candidates nominated by Vodafone Kenya Limited (VKL), provided the company retains majority ownership. The arrangement could potentially pave the way for a return to expatriate leadership at the telecommunications firm. However, Vodacom has committed to supporting the appointment of a Kenyan chairperson and maintaining local representation in senior management positions.
Vodacom currently holds a 39.9% stake in Safaricom through Vodafone Kenya, a joint investment vehicle with Vodafone Group. Its ownership would rise after purchasing the government’s 15% shareholding and absorbing Vodafone’s remaining direct 4.9% stake in the company. Under the new structure, Vodafone’s entire Safaricom investment would be consolidated under Vodacom.
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The shareholder agreement also requires Vodacom to consult the Kenyan government before appointing or replacing the board chair or CEO. While the National Treasury would retain a 20% stake after the transaction, it would continue to have input on board leadership, with the agreement stipulating that the chairperson should be a Kenyan citizen.
The proposed acquisition, valued at Sh204.3 billion, was agreed upon in December 2025. As part of the deal, Vodacom is also set to pay the government an upfront dividend of Sh40.2 billion linked to the Treasury’s remaining shareholding.
If completed, the transaction would place Safaricom under Vodacom’s governance framework, requiring the company to align with the South African group’s policies on areas such as financial reporting, compliance, procurement, risk management and operations.
The deal has already received approval from the National Assembly and the COMESA Competition Commission. However, its implementation was temporarily halted by the High Court in May following a petition filed by activist Tony Gachoka and others.
Safaricom was historically led by expatriate executives, including founding CEO Michael Joseph and his successor Bob Collymore. The appointment of Peter Ndegwa in 2019 marked the first time a Kenyan took charge of the company, a move widely viewed as a milestone for local leadership at one of East Africa’s most influential firms. The question of who leads Safaricom has remained politically significant due to the company’s outsized role in Kenya’s economy and telecommunications industry.
