NAIROBI, Kenya, Jan 16 – The Safaricom Dealer Association has warned that the government’s plan to sell part of its stake in Safaricom could weaken the dealer-based model that underpins the telco’s nationwide distribution network.
The government is in the final stages of selling a 15 percent stake in Safaricom to Vodacom Group, subject to regulatory and parliamentary approvals. If approved, the State’s 6 billion shares would be sold at Sh34 per share, raising about Sh204.3 billion.
Dealers argue that a sale to Vodacom could fundamentally alter Safaricom’s operating model, which relies on investments by dealers in infrastructure and local footprint, unlike Vodacom’s more centralised approach in other markets.
The dealer ecosystem includes authorised 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 tends to be centralised with limited shared prosperity. Safaricom’s success over the last 25 years has been built on a shared prosperity model that embeds local partners as long-term stakeholders,” a dealer representative said.
The association also warned that the proposed sale could trigger management changes, lead to reviews of existing dealer contracts and result in job losses.
Dealers have urged the government to safeguard existing agreements, provide legal protection or compensation should Safaricom change its operating model, and ensure dealer representation in the company’s governance structures.
