Nairobi — Safaricom PLC Chief Executive Officer Peter Ndegwa assured lawmakers and investors that the government's proposed sale of a 15 per cent stake in the telecoms operator to Vodacom would not affect the company's control, governance, or regulatory oversight.
Appearing before a joint sitting of the Parliamentary Committees on Finance, National Planning, and Public Debt & Privatisation, Ndegwa said the transaction under Sessional Paper No. 3 of 2025 is a shareholder-to-shareholder deal in which Safaricom is not a participant.
Under the proposal, the National Treasury would reduce its shareholding in Safaricom to 20 per cent from 35 per cent. Vodacom Group, Safaricom's largest shareholder, currently holds 40 per cent, while the remaining 25 per cent is owned by public investors through the Nairobi Securities Exchange.
"The proposed reallocation would not result in a transfer of operational control or dilute Kenyan regulatory authority," he added, " Safaricom remains subject to oversight by the Communications Authority of Kenya, the Central Bank of Kenya, and the Capital Markets Authority."
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He emphasized that Safaricom would remain "Kenyan-led and Kenyan-governed," with no changes to board composition, executive leadership, or decision-making structures anticipated as a result of the transaction.
Positioning Vodacom as a long-term strategic shareholder rather than a new entrant, Ndegwa noted that the firm has held board representation since Safaricom's inception and has supported its regional expansion, including the Ethiopia rollout.
He said a larger Vodacom stake would reinforce long-term capital commitment and provide access to global technical expertise aligned with Safaricom's growth strategy and Kenya's Vision 2030 goals.
From an operational and earnings perspective, Ndegwa told lawmakers the proposed shareholder realignment would have no impact on service delivery, supplier contracts, or Safaricom's corporate social investment arms, including the M-Pesa Foundation and the Safaricom Foundation.
