The Kenyan government has reportedly imposed conditions on the sale of a 15% stake in Safaricom to South Africa-based Vodacom Group aimed to making sure Safaricom retains its local identity.
Vodacom struck a deal last week to boost its stake in Safaricom from 35% to 55% by acquiring a 15% stake from the Kenyan government as well as a further 5% stake from Vodafone.
The total deal is valued at $2.1 billion (R36 billion).
The Kenyan government will still retain a 20% stake in Safaricom when the deal is finalised.
According to a report from ITWeb Africa on Tuesday, the Kenyan government issued a statement stipulating that Safaricom’s chairman and CEO must always be Kenyan citizens.
The government also said that Vodacom can’t change Safaricom’s corporate brand in any way without its consent, and that any restructuring of the business won’t result in employee layoffs “other than in the ordinary
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