Government Sets 9 Conditions For Vodacom To Take Over 15% Of Safaricom’s Shares

The Government of Kenya has outlined nine stringent conditions that Vodacom must commit to before proceeding with any acquisition of a stake in Safaricom, signalling its intention to safeguard the company’s identity, workforce, and national strategic interests.

According to the government, the conditions—secured “insofar as possible” within Vodacom’s capacity as a shareholder—are designed to protect Safaricom’s corporate structure, its philanthropic footprint, and its Kenyan heritage.

Among the key requirements is a firm assurance that no employee redundancies will be declared outside of the ordinary course of business, a move aimed at protecting jobs in one of Kenya’s largest and most influential companies.

The government also requires Vodacom to support the continued existence and operations of the Safaricom Foundation and the M-Pesa Foundation. These charitable arms, which play a critical role in community development, must remain active, and all trustees for current and future foundations must be Kenyan citizens. Furthermore, all funds disbursed by the foundations must continue to be used exclusively for projects within Kenya.

Another significant condition is that any proposed expansion of Safaricom beyond Kenya’s borders—excluding current operations—must first be discussed with the Government of Kenya. While the government’s consent will not be required for Vodacom’s support of such expansion, consultation is mandatory.

In a move to preserve Safaricom’s leadership identity, the government insists that both the Chairman and Chief Executive Officer must always be Kenyan citizens. Additionally, no changes may be made to the company’s executive committee, as constituted at the date of signing, without the CEO’s consent.

Safaricom’s brand is also protected under the conditions. Vodacom must commit to maintaining the corporate identity—including the “Safaricom” name, logo, trademarks, and overall brand appearance—without alteration.

The government further seeks to ensure stability for local businesses, prohibiting any significant changes to local suppliers for at least three years following the signing, except in the normal course of business.

Finally, the agreement stipulates that none of these actions or decisions—ranging from leadership changes to brand modifications—can be recommended, approved, or implemented by the board, shareholders, or management without the prior written consent of the Government of Kenya.

The conditions underscore Kenya’s determination to preserve Safaricom’s strategic value, protect local jobs, and maintain national influence over one of the country’s most iconic and economically vital companies.

Read Also: Government Sells 15% Of Its Stake In Safaricom To Vodafone For KSh 244.5 Billion