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The Common Market for Eastern and Southern Africa (COMESA) Competition and Consumer Commission has approved Vodacom Group’s plan to acquire an additional 15 per cent stake in Safaricom from the Kenyan government, removing a key regulatory hurdle for the transaction.
The Commission concluded that the proposed acquisition would not undermine competition within the regional telecommunications market or conflict with public interest considerations. Following a detailed market assessment, regulators determined that the deal would not significantly alter competitive dynamics across the sector.
Market Structure Remains Competitive
Safaricom currently dominates Kenya’s telecommunications landscape, controlling an estimated 60 to 70 per cent of the mobile SIM card market. Its main rival, Airtel Kenya, accounts for roughly 30 to 40 per cent, while Telkom Kenya holds a smaller share.
Despite Safaricom’s strong market position, the Commission stated that the transaction would not materially increase market concentration to a level that could substantially restrict competition.
In the broadband segment, Safaricom maintains a market share of approximately 30 to 40 per cent and competes with providers such as Jamii Telecommunications, poa! Internet and Wananchi Group. According to COMESA’s assessment, the acquisition will not significantly expand Safaricom’s existing market dominance.
Government Divestment and Deal Structure
The transaction stems from the Kenyan government’s decision to divest roughly six billion Safaricom shares at a price of KES 34 per share. The sale is expected to generate about KES 204.3 billion (approximately $1.58 billion), providing fiscal support for the national budget without increasing public debt levels.
Vodacom currently holds a 40 per cent stake in Safaricom. Upon completion of the acquisition, its ownership will increase to 55 per cent, giving the South African telecom operator majority control.
Despite the change in ownership structure, Safaricom will remain listed on the Nairobi Securities Exchange, ensuring continued public participation in its shareholding.
Strategic Expansion Across East Africa
Vodacom Group Chief Executive Officer Shameel Joosub described the acquisition as a strategic step toward accelerating digital growth in the region. He noted that deeper integration between the companies could strengthen digital services and financial inclusion initiatives across Kenya and Ethiopia.
Safaricom is widely regarded as a leading telecom and fintech player in Africa, particularly due to the success of its mobile money platform and digital services ecosystem.
Regulatory Approvals Still Pending
While COMESA’s approval represents a major milestone, the transaction still requires clearance from several Kenyan regulators, including the Competition Authority of Kenya, the Capital Markets Authority and the Communications Authority of Kenya.
The deal must also receive parliamentary approval for the government’s share sale, alongside consent from Safaricom shareholders and compliance with Nairobi Securities Exchange requirements.
Additional regulatory scrutiny may arise from Ethiopia, where Safaricom operates, as well as from South Africa, given Vodacom’s headquarters in Johannesburg.
Implications for the Regional Telecom Sector
Industry observers view the transaction as part of a broader consolidation trend in Africa’s telecommunications industry, where partnerships and acquisitions are increasingly shaping the competitive landscape.
If completed, the deal could strengthen Safaricom’s position as a regional digital services powerhouse while enabling Vodacom to deepen its footprint in East Africa’s rapidly expanding telecom and fintech markets.
The development also underscores growing investor confidence in Africa’s digital economy, particularly as mobile connectivity and mobile financial services continue to drive financial inclusion across the continent.
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