The Competition Authority of Kenya has said it will not conduct a full national review of Vodacom Group’s plan to increase its ownership in Safaricom to about 55 percent, noting that the transaction falls under the jurisdiction of regional competition regulators.
The position was communicated in January 2026 as regulatory scrutiny intensified around the proposed ownership changes at Safaricom, Kenya’s largest telecommunications company. Vodacom is seeking to raise its stake through agreements involving the acquisition of shares currently held by the Government of Kenya and Vodafone Group, a move that would make Vodacom the majority shareholder.
Under the proposed transaction, Vodacom would acquire a combined 20 percent stake, reducing the government’s direct shareholding from 35 percent to 20 percent, while the remaining shares would continue to be held by public investors. If approved, the deal would give Vodacom effective control of more than half of Safaricom’s issued share capital.
CAK Director General David Kemei said the transaction qualifies for regional competition assessment because it involves companies operating across multiple countries and meets turnover thresholds set under regional competition frameworks. “The applicable framework requires transactions of this nature to be reviewed at the regional level to avoid duplication and multiple regulatory filings,” he said.
As a result, the merger review will be handled by the East African Community Competition Authority and the COMESA Competition and Consumer Commission. These bodies have initiated their own review processes and invited submissions from the public and affected stakeholders on whether the transaction could significantly affect competition within the region.
CAK clarified that while it will not carry out a comprehensive national merger inquiry, it will remain engaged throughout the process. The Authority said it will provide input to the regional regulators, particularly on issues related to market structure, consumer welfare, and competition dynamics within Kenya’s telecommunications sector.
The approach marks a shift from previous practice, where large cross border transactions often required parallel reviews by both national and regional competition authorities. The updated framework is intended to streamline approvals, reduce regulatory overlap, and improve ease of doing business for companies operating in multiple African markets.
Despite stepping back from a full review, CAK stressed that its mandate to safeguard competition in Kenya remains unchanged. The Authority said it will continue monitoring developments and working with regional bodies to ensure that the transaction does not result in anti competitive outcomes or harm to consumers.
