The Kenyan government’s decision to sell a 15 per cent stake in Safaricom has marked one of the biggest ownership changes in the history of East Africa’s most profitable telecommunications company. While the transaction has sparked debate over the state’s reduced shareholding, it has also raised a simple question among millions of Safaricom customers and investors: who actually owns the company now?

The answer is that Safaricom remains a publicly listed Kenyan company, but its largest shareholder is now Vodafone Kenya Limited, which controls 55 per cent of the business following the completion of the transaction. The Government of Kenya retains a 20 per cent stake, while the remaining 25 per cent continues to be held by institutional and retail investors through the Nairobi Securities Exchange (NSE).

Before the sale, the ownership structure was significantly different. The government held 35 per cent, Vodafone Kenya owned about 40 per cent and the public controlled the remaining quarter of the company. By disposing of 15 per cent of its stake, the state relinquished its position as a major co-owner while allowing Vodafone Kenya to become the majority shareholder.

Despite the shift, the government insists it has not surrendered its strategic influence over Safaricom.

National Treasury Cabinet Secretary John Mbadi described the transaction as part of a broader strategy to unlock capital for development without increasing taxes or public debt.

“This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital, without increasing taxes or the country’s debt burden,” Mbadi said, adding that Safaricom remains “a key strategic investment” because the government is retaining a 20 per cent stake and board representation.

The Treasury expects to receive approximately Ksh204 billion from the sale of the shares. In addition, Vodafone Kenya agreed to make an upfront payment of Ksh40.2 billion in exchange for the right to receive future dividends that would otherwise have accrued to the government’s remaining 20 per cent shareholding for a specified period. Together, the arrangements inject roughly KSh244 billion into government coffers.

For Vodafone and its South African subsidiary Vodacom, the acquisition represents far more than an investment in Kenya’s largest telecommunications company.

Vodacom Group Chief Executive Shameel Joosub said acquiring majority control of Safaricom strengthens the company’s position across Africa and creates opportunities to expand digital financial services beyond Kenya.

“Acquiring a controlling stake in Safaricom strengthens our position as a market leader while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Joosub said.

The acquisition also simplifies what had previously been a complex ownership arrangement. Before the transaction, Vodafone Group and Vodacom jointly owned Vodafone Kenya. Following an internal restructuring, Vodacom now owns Vodafone Kenya outright, making Safaricom a majority-controlled subsidiary within the broader Vodacom Group.

Safaricom Chief Executive Peter Ndegwa sought to reassure customers and investors that the ownership changes would not affect the company’s operations.

“Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business,” Ndegwa said, adding that the company would continue to focus on innovation, regional expansion and digital financial services.

For millions of Kenyans, the ownership restructuring is unlikely to change their day-to-day experience. Safaricom continues to operate under Kenyan law, remains listed on the Nairobi Securities Exchange and is regulated by the Communications Authority of Kenya, the Capital Markets Authority and the Central Bank of Kenya in relation to M-Pesa. The company’s board, management team and corporate governance obligations also remain in place.

What does change is corporate control. With a 55 per cent stake, Vodafone Kenya now has majority voting power over shareholder decisions, although some strategic matters continue to be governed by Kenyan company law, stock exchange regulations and board oversight.

The sale also closes another chapter in Safaricom’s ownership journey. The company was established in 1997 as a subsidiary of Telkom Kenya before Vodafone acquired a 40 per cent interest in 2000. In 2008, the government floated 25 per cent of the company on the Nairobi Securities Exchange in what remains one of Kenya’s most successful initial public offerings. Nearly two decades later, the latest transaction further reduces the State’s ownership while consolidating Vodafone’s influence over a company that serves more than 50 million customers across Kenya and Ethiopia and remains one of Africa’s most valuable listed technology businesses.