Abay Bank lists in Ethiopia

As I sit here, sipping my morning coffee, I'm reminded of the complexities of Africa's digital economy. Everywhere you turn, there are stories of tech companies outgrowing their roles, becoming national assets, and governments struggling to balance economic growth with public participation. It's in this context that we find ourselves with the latest development in East Africa's telecoms landscape: Vodacom's move to acquire a 15% stake in Safaricom, Kenya's largest telecoms firm.

For those new to this story, Safaricom is more than just Kenya's biggest telco; it operates M-PESA, one of the world's most successful mobile money platforms. Over 40 million Kenyans use M-PESA daily to send money, pay bills, save, and run businesses. The Kenyan government agreed to the sale in December 2025, hoping to raise funds for infrastructure projects through a new National Infrastructure Fund. However, a court paused the deal in March after petitioners argued that Safaricom, as a strategic public asset, should not be sold to a foreign company without greater public participation and transparency.

The appeals court has now allowed the transaction to proceed while the wider legal dispute continues. This decision has significant implications for Vodacom, which moves a step closer to gaining majority control of Safaricom. If the transaction goes through, Vodacom's ownership of East Africa's largest telecoms company will rise from about 40% to roughly 55%, making it the majority shareholder. This is a major coup for Vodacom, which will gain control of not only Safaricom but also the M-PESA mobile money platform.

The Kenyan government would have faced a growing budget problem if the sale remained frozen, especially after earmarking the proceeds for infrastructure spending. By allowing the transaction to proceed, the government has likely avoided a major fiscal crisis. However, this decision also raises questions about the government's commitment to public participation and transparency in the sale of strategic public assets.

Zooming out, we see that the story is really about how governments are beginning to treat successful technology companies. Safaricom has outgrown its role as a simple telecoms operator and has become one of Kenya's most valuable public assets. This is a trend we're seeing across Africa, where tech companies are becoming cornerstones of national economies. Governments must now navigate the complex relationship between economic growth, public participation, and the role of technology in shaping national assets.

As Vodacom moves closer to gaining majority control of Safaricom, we're left wondering what this means for the future of telecoms in East Africa. Will this deal lead to greater investment in the region's digital infrastructure? Or will it create new challenges for governments and regulators as they navigate the complex landscape of tech companies and national assets?