Safaricom AGM to Decide Landmark Governance Overhaul in Major Board Shake-Up

Safaricom PLC shareholders will vote on a sweeping governance overhaul at the company’s Annual General Meeting (AGM) on July 31, in what could become one of the most consequential corporate governance decisions in the history of the Nairobi Securities Exchange.

While the AGM agenda includes routine items such as dividend approval and auditor reappointments, a series of proposed amendments to the company’s Articles of Association could redefine how Kenya’s most valuable listed company is governed for decades to come.

Among the key proposals is an amendment to Article 89, which removes the cap on the size of the board while introducing a minimum of seven directors. The proposal also requires that a majority of independent directors be Kenyan citizens. Board representation for Vodafone Kenya Limited (VKL) and the Cabinet Secretary to the National Treasury would be determined by a fixed formula, allocating one director for every complete 10 percent shareholding held by either party. The formula-based approach removes discretion from the appointment process and provides greater certainty over board composition.

The governance reforms also introduce a structured mechanism for resolving board deadlocks. Under the proposed new Article 116A, matters that fail to secure agreement during the first vote would return for a second vote. If a deadlock persists, the outcome would be determined by the side that secures the majority in the second round, replacing ad hoc decision-making with a predefined process.

The proposed amendments further strengthen shareholder protections by tightening rules around dividend recommendations and reserve management. Article 131 would require directors to recommend dividends in line with the company’s approved dividend policy, while Article 134 would subject reserve-setting decisions to the same policy framework. The changes are intended to reduce discretionary decision-making and improve predictability for investors.

The governance overhaul comprises 14 special resolutions, each requiring approval by at least 75 percent of shareholders voting by poll. The board has issued an explanatory memorandum without recommending for or against the proposals, while marked-up versions of every proposed amendment have been made available to shareholders ahead of the meeting.

The reforms were not mandatory. VKL could have managed changes in shareholding through informal arrangements, as is common in many markets. Instead, the company has opted for a transparent, shareholder-led process that places every proposed governance change before investors for approval.

When shareholders convene on July 31, they will vote clause by clause on how power is allocated within one of Africa’s largest telecommunications companies. Beyond the outcome of each resolution, the process itself represents an important milestone for Kenya’s capital markets, demonstrating a commitment to transparency, clearly defined governance rules and equal shareholder participation.

Once the vote is concluded, investors, analysts and Safaricom’s more than 50 million customers will have a publicly codified framework governing board representation, decision-making and shareholder rights—bringing greater clarity to the governance of one of East Africa’s most influential companies.

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