In a statement issued from its Secretariat in Arusha, the EAC confirmed that the EAC Competition Authority has received a formal merger notification and, in accordance with regional law, has initiated a full investigation to assess the transaction’s impact.
Arusha. The East African Community (EAC) has formally intervened in the controversy surrounding the proposed sale of a major stake in Safaricom PLC, announcing the commencement of a regional competition inquiry into the transaction involving Vodafone Kenya Limited.
In a statement issued from its Secretariat in Arusha, the EAC confirmed that the EAC Competition Authority has received a formal merger notification and, in accordance with regional law, has initiated a full investigation to assess the transaction’s impact.
The inquiry will examine whether the proposed deal would substantially lessen competition within the East African Community.
The investigation is being conducted under the East African Community Competition (Amendment) Act, 2023, and the EAC Competition (Mergers and Acquisitions) Regulations, 2025.
According to an official notice dated January 22, 2026, the probe centres on the proposed acquisition of a 15 per cent shareholding in Safaricom PLC by Vodafone Kenya Limited, a subsidiary of the Vodacom Group, together with an internal restructuring of Vodafone International Holdings B.V.’s interests in Vodafone Kenya.
The EAC Competition Authority has invited all interested stakeholders, including competitors, suppliers and customers of the merging parties, to submit written representations on the proposed transaction.
“Stakeholders have until February 16, 2026, to submit their views. The Authority has assured that all submissions will be treated with strict confidentiality and used solely for the purposes of the inquiry,” the notice stated.
The regional intervention comes amid heightened political and public scrutiny in Kenya, where Members of Parliament have launched a separate inquiry into the government’s plan to sell part of its Safaricom stake in a deal estimated at approximately US$1.5 billion.
If approved, the transaction would raise Vodacom’s ownership in Safaricom to 55 per cent, granting it controlling interest in Kenya’s most valuable company.
Lawmakers and civil society organisations have questioned whether the proposed sale price reflects Safaricom’s long-term growth prospects, warning that the government risks disposing of a strategic national asset at an undervalued price.
Under the proposed structure, Vodacom would acquire an effective 20 per cent stake in Safaricom—15 per cent from the Government of Kenya and a further 5 per cent from Vodafone.
The government’s portion is valued at about €1.36 billion (approximately KSh 204 billion), while the Vodafone tranche is estimated at €0.45 billion (around KSh 68 billion).
Upon completion, Safaricom’s ownership structure would stand at 55 per cent Vodacom, 20 per cent Government of Kenya and 25 per cent public shareholders through the Nairobi Securities Exchange.
With a market capitalisation of about €7.7 billion, Safaricom is Kenya’s leading telecommunications operator and a regional leader in digital financial services.
Its M-Pesa platform processes more than 100 million transactions daily and serves over 38 million customers in Kenya, while the company also holds a majority stake in Safaricom Ethiopia.
In the six months to September 30, 2025, Safaricom reported a 9.3 per cent increase in service revenue in Kenya, driven largely by a 14 per cent rise in M-Pesa revenues.
Vodafone Group Chief Executive Officer Margherita Della Valle has described the acquisition as a strategic move to secure controlling ownership in one of Africa’s most successful telecommunications and fintech companies, citing Safaricom’s strong growth record and long-standing partnership with Vodafone.
The transaction remains subject to regulatory approvals in Kenya, South Africa and Ethiopia, with completion expected in the first quarter of 2026.
As national and regional scrutiny intensifies, the EAC inquiry is set to play a central role in shaping the future ownership and competitive landscape of one of East Africa’s most influential corporations.
Vodacom Group, the acquiring entity, operates telecommunications and mobile financial services across several EAC Partner States, including Tanzania and the Democratic Republic of Congo. In Kenya, it operates through Safaricom PLC, which provides mobile telecommunications, fixed broadband and mobile financial services, including the widely used M-Pesa platform.
