Vodacom’s bid to lift its stake in Safaricom to 55% has drawn scrutiny from East and Southern African regulators concerned about growing concentration in telecoms and mobile money.
As M-PESA’s influence stretches deeper into East Africa and Kenya’s financial system, competition authorities are weighing whether the deal could reshape fintech access, pricing, and innovation across the region.
At the centre of the deal is Vodacom Group, South Africa’s largest mobile operator, which is seeking to increase its effective stake in Safaricom through its subsidiary, Vodafone Kenya Limited.
The move involves the acquisition of an additional 15% stake currently held by the Kenyan government, alongside an internal restructuring of Vodafone’s international shareholding.
The Kenyan government is expected to raise about roughly $1.3 billion (Sh204 billion) from the sale, funds it has earmarked for infrastructure and fiscal support.
Once completed, the government would retain about 19.99%, with the remaining 25% held by public investors on the Nairobi Securities Exchange.
However, the transaction is now under review by the East African Community Competition Authority (EACCA) and the COMESA Competition and Consumer Commission, both of which are assessing whether the deal could substantially lessen competition in East and Southern Africa.
“This transaction involves a change in effective control in a market where Safaricom already holds a dominant position,” the EACC said in a notice inviting submissions from competitors, suppliers and customers.
“The Authority will determine whether the merger is likely to substantially lessen competition within the Community.”
For Africa’s fintech industry, particularly in East Africa and Kenya, the stakes are high.
Safaricom’s M-PESA platform is not just a mobile money service but a core financial infrastructure, handling payments, savings, credit, merchant settlement and government transfers for tens of millions of users.
Deeper control by Vodacom raises questions about pricing power, fintech startups' platform access, and the future shape of digital finance competition.
It is against this background that regulators are scrutinising market dominance, cross-border influence, data control, and the potential bundling of telecoms and financial services across Vodacom’s regional footprint, which includes Tanzania and the Democratic Republic of Congo.
Safaricom CEO Peter Ndegwa has sought to calm nerves, telling lawmakers that the deal is a shareholder-to-shareholder transaction that will not alter Safaricom’s governance or regulatory oversight.
“Safaricom will remain Kenyan-led and Kenyan-governed,” he said, citing continued supervision by the Communications Authority of Kenya and the Central Bank of Kenya.
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