No expat CEOs: Kenya’s final condition in landmark Safaricom sale

In tough conditions to ensure local control over Safaricom, the Kenyan government has directed that the telco’s chairman and the chief executive officer (CEO) must be Kenyan citizens, part of key stringent directives for Vodacom Group as it takes a controlling 55% stake in Safaricom after a KES 244.5 billion ($1.88 billion) deal. 

“The chairman and the chief executive officer of the company shall at all times be citizens of Kenya,” the Kenyan government said in a statement seen by TechCabal. 

The binding conditions represent the Kenyan government’s efforts to safeguard national identity, executive leadership, and the local workforce, even as foreign ownership approaches a majority.  

The Kenyan government privately sold a 15% stake but insisted on strict governance requirements to ensure the mobile giant, whose mobile money product, M-PESA, contributed KES 88.1 billion ($682 million) in revenue in the first half of 2025, remains aligned with domestic economic and social priorities, curbing fears that foreign control would compromise its status as a core national asset.

In addition to top leadership roles, the government secured several protectionist clauses to preserve Safaricom’s market identity and domestic impact. 

For instance, Vodacom has been forbidden from making any changes to the company’s corporate brand, including the “Safaricom” name, trademarks, or logos, without the government’s prior written consent, likely to ensure the brand remains a recognised national symbol. 

Vodacom must also commit that no employee redundancies will be declared outside the ordinary course of business, and that there will be no significant changes to local suppliers within the next three years. “No employee redundancies are declared by the Company other than in the ordinary course of business,” the government added. These conditions seek to protect the local supply chain and workforce from potential post-takeover restructuring. 

The new terms also ensure Safaricom’s extensive charitable footprint remains focused entirely on Kenya. 

“All trustees of the Safaricom Foundation and the M-PESA Foundation or any future foundations established by the Company shall be citizens of Kenya, and all funds of such foundations shall be utilised for projects in Kenya,” the government said. 

On regional strategy, the Kenyan government will retain the right to consult, meaning Vodacom must consult with it before supporting any expansion outside Kenya, which seems to ensure the government maintains a voice in the use of Safaricom’s significant cash flows for new market entries. 

The conditions assert the state’s continued strategic influence despite its 20% minority shareholding.