Vodacom adds two directors in Safaricom board shakeup

Vodacom’s acquisition of a 15% stake in Safaricom for Ksh204 billion has reshaped the control of Kenya's largest telecommunications company. After settling the government's 15% holding and consolidating Vodafone Group's remaining 35% stake, Vodacom now holds a 55% share, giving it majority ownership. This shift has increased Vodacom's influence on Safaricom's board, board representation, and CEO selection process.

As part of the deal, Vodacom increased its board representation from three directors to five, while the government's representation fell from three directors to two. The government's role, however, remains significant as it retains a say in the appointment of the chairman and one of Safaricom's most important leadership appointments.

Vodacom has also agreed to ensure that Safaricom's chairman is Kenyan and that most senior executives remain Kenyan, signaling that the ownership change may not lead to an immediate overhaul of the company's management. The transaction creates a new power structure at Safaricom, with Vodacom having decisive shareholder influence and the government retaining a narrower but significant governance role.