Safaricom has secured a major regulatory breakthrough after receiving a fresh 25 year operating licence from the Communications Authority of Kenya under the country’s new Unified Licensing Framework.
The approval, announced on May 18, 2026, replaces the temporary two year permit the telecom giant had been using while discussions continued between regulators and operators over spectrum fees, service outage penalties and the future structure of Kenya’s telecom licensing system.
The new licence represents a major milestone for Safaricom, which began operations in 2000. With the fresh approval now in place, the company has effectively secured regulatory backing through to its 50th anniversary.
Industry observers say the development comes at a critical period for Kenya’s telecom sector, where operating costs and regulatory demands have continued to rise. The country is gradually moving towards a more competitive auction based spectrum system, a shift many believe could make future telecom licences significantly more expensive.
By securing a long term licence now, Safaricom is seen as protecting itself from years of uncertainty while strengthening investor confidence around its expansion plans.
The company has evolved far beyond traditional telecommunications in recent years, with more than 46 million subscribers alongside major investments in mobile finance, fibre infrastructure, data centres and its expansion into Ethiopia.
However, the timing of the licence approval has also drawn fresh attention because it comes amid an ongoing legal dispute involving the proposed sale of part of the Kenyan government’s stake in the company.
The High Court of Kenya recently refused to lift orders blocking the planned sale of a 15 percent government stake in Safaricom to Vodacom Group
The court also reportedly rejected attempts by Vodacom and its parent company, Vodafone, to remove themselves from the ongoing case.
The controversial transaction, estimated at 205 billion Kenyan shillings, remains frozen for now. If eventually approved, Vodacom’s ownership in Safaricom would rise from 40 percent to 55 percent, effectively giving the South African telecom company majority control of one of Kenya’s biggest telecom and fintech businesses.
The Kenyan government has defended the proposed sale, saying the move is intended to raise funds while also supporting Safaricom’s expansion into Ethiopia and deeper fintech operations through stronger collaboration with Vodacom.
Critics, however, have questioned the transparency of the process and argued that the government may be undervaluing one of its most profitable assets. Concerns have also been raised over the reported share valuation and the level of public participation surrounding the transaction.
Ironically, the delay in finalising the sale may still benefit the Kenyan government financially, as authorities continue to receive dividend payments from Safaricom while the court process drags on. Reports suggest the government could earn billions of additional shillings if the matter extends beyond August 2026.
The situation has also intensified conversations around competition within Kenya’s telecom market. While Safaricom now enjoys a 25 year licence and long term regulatory certainty, rivals such as Airtel Kenya are reportedly still operating under shorter approvals expected to expire in January 2027.
Some industry stakeholders fear the imbalance could further strengthen Safaricom’s dominance in an already competitive and politically sensitive sector.
