The Kenyan government is selling a 15% stake in telecom giant Safaricom to South Africa’s Vodacom for roughly $1.6 billion. This strategic sale aims to raise crucial funds as Kenya contends with significant public debt constraints. Vodacom, already a major shareholder, will pay a substantial 20% premium per share, boosting its total ownership to a controlling 55%. Consequently, the state’s holding will decrease to 20%. As part of the arrangement, Vodacom has also secured the rights to future dividends on the government’s remaining shares via an additional upfront payment. This transaction underscores a pivotal shift, granting Vodacom effective command of the company renowned for its pioneering M-Pesa mobile money service, while providing Kenya with an immediate fiscal boost.
CNBC Africa
