The Government of Kenya has outlined nine stringent conditions that Vodacom must meet before it can proceed with acquiring a stake in Safaricom, underscoring efforts to protect jobs, local control, and the company’s national identity.
In a statement, the government said it had secured firm undertakings from Vodacom—insofar as possible in its capacity as a shareholder—to ensure that the strategic interests of Kenyans remain safeguarded should the transaction proceed.
Among the key conditions is a commitment that no staff redundancies will be declared outside the ordinary course of business, protecting thousands of employees of the telecom giant.
The government also required Vodacom to maintain and support the operations of the Safaricom Foundation and the M-Pesa Foundation, ensuring continued funding for community development and social impact programmes across the country.
On regional expansion, Vodacom must consult the Government of Kenya before backing Safaricom’s expansion outside the country, except in cases where Safaricom already operates internationally. However, Kenya’s approval will not be required for Vodacom’s support of such expansion.
In a bid to preserve Kenyan leadership at the helm of the telco, the agreement stipulates that both the Chairman and the Chief Executive Officer of Safaricom must always be Kenyan citizens.
The Government further insists that no changes shall be made to the company’s executive committee without the consent of the CEO—an additional safeguard to maintain continuity in strategic decision-making.
Brand integrity also features prominently among the conditions. Vodacom must guarantee that there will be no alterations to Safaricom’s corporate brand, including its name, logo, trademarks, or any associated identity elements.
To protect local businesses, the government requires that Safaricom’s local suppliers remain unchanged for at least three years, except for adjustments made in the normal course of business.
Additionally, all trustees of the Safaricom Foundation, M-Pesa Foundation, and any future foundations must be Kenyan citizens, with all funds dedicated exclusively to projects within Kenya.
Finally, the agreement states that none of the actions listed—ranging from leadership changes to brand alterations—may be undertaken, approved or even proposed without the prior written consent of the Government of Kenya.