The Lower Eastern Times Opening The Third Eye
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The Safaricom Dealer Association has expressed concerns that the government’s plan to sell a portion of its stake in Safaricom to Vodacom could undermine the dealer-based network that has been central to the company’s nationwide distribution model.
The government is reportedly in the final stages of selling a 15 percent stake in Safaricom to Vodacom Group, pending regulatory and parliamentary approval. If the deal goes through, the State’s 6 billion shares would be sold at Sh34 each, potentially raising around Sh204.3 billion.
Dealers argue that a sale to Vodacom could fundamentally change Safaricom’s operating model, which depends heavily on investments by local dealers in infrastructure and community presence—a model that differs from Vodacom’s more centralized operations in other countries.
The dealer network includes authorized distributors, partner dealer outlets, M-Pesa agents, Lipa na M-Pesa merchants, and Pochi la Biashara merchants.
“In other markets where Vodacom operates, the model is more centralized with limited shared benefits. Safaricom’s success over the last 25 years has been built on a shared prosperity approach that makes local partners long-term stakeholders,” said a dealer representative.
The association also warned that the proposed sale could prompt management changes, reviews of dealer contracts, and potential job losses.
Dealers are calling on the government to protect existing agreements, provide legal safeguards or compensation if Safaricom’s operating model is altered, and ensure that dealers continue to have a voice in the company’s governance.
