(NAIROBI, KENYA) – South Africa’s Vodacom has added two directors to Safaricom’s board in a shake-up that reflects its increased ownership of the Kenyan company. The move follows Vodacom’s acquisition of a 15 percent stake from the Kenyan government.
Vodacom appointed Mariam Cassim, its chief executive for financial technology, and Matimba Mbungela, its chief human resources officer, to the Safaricom board as non executive directors. The appointments push Vodacom’s representation to five members.
The Kenyan government is expected to give up one of its seats on the Safaricom board to Vodacom. The changes reflect the South African firm’s increased influence on the Nairobi Securities Exchange listed company. The changes also include appointing the Kenyan firm’s chief executive officer.
The State’s stake in Safaricom has dropped to 20 percent from 35 percent. The government has ceded one seat to Vodacom with the exit of John Kipngetich Mosonik. Mosonik is a Kenyan technocrat who once served as the Principal Secretary in the State Department for Infrastructure.
Vodafone also sold its remaining five percent stake to Vodacom. The British telecom group surrendered its board seat to the South African operator. This saw the exit of James Ludlow from Safaricom’s board after a two year stint. Ludlow is Vodafone Group’s reward and policy director of human resources. His exit ended Vodacom’s parent company direct ownership and influence over Safaricom.
Shameel Josuub is the chief executive of Vodacom. He said in an earlier investor call that as part of the relationship and cooperation agreement, Vodacom was to increase the number of directors on the board to five from three. The company would take one seat from the Kenyan government and the other from Vodafone.
Josuub said the board currently has one Vodafone director and three Vodacom directors. This will all become Vodacom. He said there will be five Vodacom directors, two government directors, four independents and one executive who is the chief executive. He said this is a slight change because Vodacom will take over one seat from government.
Cassim has held senior positions at Vodacom since 2017. Mbungela has been the group’s chief human resources officer since 2014.
The other Vodacom officials remaining on the telco’s board are South Africans Mohamed Joosub and Raisibe Morathi, as well as French national Murielle Lorilloux.
Vodacom’s stake in Safaricom increased to 55 percent after buying the 15 percent stake and Vodafone’s direct shares of 4.9 percent. This gives the South African group effective control of the Kenyan telco.
The deal prompted the signing of a new shareholder agreement that guides the hiring of Safaricom’s chief executive and chair. Safaricom’s board would be required to appoint the chief executive from a list of nominees provided by Vodafone Kenya Limited. This is the holding vehicle through which Vodacom owns its stake in Safaricom.
Vodafone Group owns 65 percent of Vodacom. It has committed to influence the pick of a chair who will be Kenyan. The National Treasury will retain a 20 percent stake in Safaricom after the transaction. It will also have a say in the appointment of the chairman. Vodacom has agreed to have a Kenyan head the board of the telecom giant. The agreement states that Vodafone Kenya Limited further undertakes to ensure that the chairman is of Kenyan nationality.
Vodacom has also agreed to have most of Safaricom’s senior executives remain Kenyan. It will content itself with a decisive say over who occupies the corner office of the Nairobi Securities Exchange listed firm.
Vodacom bought the Treasury stake for KES 204.3 billion. This is equal to about $1.26 billion or £992 million. The company paid the government an upfront dividend of KES 40.2 billion on its remaining 20 percent stake. This is equal to about $248 million or £195 million. The amount will be recouped from the State’s future dividends.
The deal makes Safaricom a subsidiary of Vodacom Group. Safaricom will be expected to follow Vodacom policies, standards, procedures and programmes. These include those relating to financial reporting, governance, legal affairs, compliance, ethics, risk management, procurement and operations. The agreement was signed on 3 December 2025.
Vodafone will have an indirect 35.75 percent stake in Safaricom given its 65 percent ownership of Vodacom. Vodafone filed the new agreement with the US Securities and Exchange Commission on 22 May.