Nine Conditions Vodacom MUST Meet Before Buying Safaricom Stake
Nine Conditions Vodacom MUST Meet Before Buying Safaricom Stake
The Government of Kenya (GOK) has outlined nine strict conditions that Vodacom must commit to before taking up any stake in Safaricom.
These conditions are designed to protect Kenyan jobs, brand identity, governance, and the long-term interests of the country’s digital economy.
1. Protect All Jobs
Vodacom must ensure that Safaricom does not declare redundancies. The only exceptions allowed are routine changes that occur in the normal course of business.
2. Maintain the Safaricom and M-Pesa Foundations
Vodacom must support the continued operation of the Safaricom Foundation and the M-Pesa Foundation. These foundations must remain active and continue their charitable work.
3. Consult Government Before Regional Expansion
Safaricom must consult the GOK before expanding outside Kenya. While government consent is not required, consultation is mandatory before any new regional moves.
4. Keep a Kenyan Chairman and CEO
The Company’s Chairman and CEO must always be Kenyan citizens. This requirement safeguards local leadership and strategic independence.
5. Maintain the Current Executive Committee
Safaricom cannot change its executive committee without the CEO’s consent. This ensures leadership stability during and after the transaction.
6. Preserve the Safaricom Brand
Vodacom cannot alter Safaricom’s corporate brand. The name, logo, trademarks, and visual identity must remain unchanged.
7. Protect Local Suppliers
Safaricom must avoid major changes to its local supplier base for at least three years. Only routine procurement adjustments are allowed.
8. Keep Foundation Trustees Kenyan
All trustees of the Safaricom Foundation, M-Pesa Foundation, or any future Foundation must be Kenyan citizens. All foundation funds must continue supporting projects within Kenya.
9. Seek Government Approval for Key Decisions
Safaricom must obtain prior written approval from the GOK before undertaking any action covered under conditions (1) to (6). This applies to decisions made by the Board, shareholder groups, or management.
