The Competition Authority of Kenya (CAK) has opted not to carry out a full local review of Vodacom Group’s plan to increase its stake in Safaricom, instead deferring the process to regional competition regulators.
Vodacom is seeking to raise its shareholding in Kenya’s largest telecoms operator from 35% to 55% through a transaction valued at approximately KSh 272 billion (about $1.6 billion). Under the proposed deal, Vodacom would acquire a 15% stake from the Government of Kenya and an additional 5% from Vodafone, giving it controlling interest in Safaricom. The Kenyan government would retain 20% ownership, while public shareholders would hold about 25%.
Rather than initiating a full merger review—typically involving extensive scrutiny and regulatory fees—CAK has said the deal falls under the jurisdiction of regional bodies. The transaction will instead be reviewed by the East African Community Competition Authority (EACCA) and the Common Market for Eastern and Southern Africa (COMESA) Competition and Consumer Commission (CCCC), as the companies involved operate across multiple countries and meet regional notification thresholds.
CAK noted that it will still provide input on the potential impact of the deal on competition and consumer welfare within Kenya, but it will not lead the investigation. The move reflects a broader regulatory shift toward handling cross-border mergers at the regional level, aimed at reducing duplicated reviews and lowering compliance costs for multinational businesses.
The decision is also significant as it marks one of the first major tests of the EAC Competition Act, which became operational in late 2025. With Safaricom playing a central role in Kenya’s digital economy—particularly through its mobile money platform M-Pesa—the outcome of the regional review is expected to draw close attention from investors, policymakers, and consumers alike.
