Abu Dhabi’s e& has agreed to sell its entire 16.21 percent stake in Vodafone Group to Vega, an acquisition vehicle wholly owned by the Niel family group, for approximately AED 21.8 billion ($5.95 billion), including Vodafone’s final FY26 dividend. The transaction, which covers 3.94 billion shares at 112.5 pence each, follows a strategic review of e&’s international portfolio and terminates its relationship agreement with the British telecoms group. e& expects a net cash return of about AED 4.7 billion and has withdrawn its board representation, signalling a full exit from an investment that once gave it a seat at the table of a major European operator.

The divestment coincides with a deepening of South African capital in East Africa. Vodacom Group, the South African-based parent of Safaricom, last month completed the acquisition of an additional 15 percent stake in the Kenyan mobile operator for Sh204.3 billion, lifting its holding to 22 billion shares. Absa Bank is buying a further 16.5 percent of its Kenyan unit through a tender offer, while Nedbank has bid for a 66 percent stake in NCBA Group. Based on the most recent declared payouts, the three South African multinationals stand to receive at least Sh21.5 billion in additional dividends from Nairobi-listed firms. Analysts in Johannesburg view the moves as a response to slow domestic growth and a mature banking sector, with Kenya’s position as a gateway to the fast-expanding East African Community offering higher returns.

The increased dividend flows will place additional demand on Kenya’s foreign-exchange market as the firms purchase dollars to repatriate profits. However, market participants in Nairobi note that ample dollar liquidity and a stable shilling mean the purchases are unlikely to disrupt the exchange rate. Safaricom alone, if it maintains its Sh2 per share dividend, would pay Vodacom Sh44 billion in the year to March 2027, up from Sh32.05 billion previously. Vodacom has already secured Sh6.9 billion in final dividends on the newly acquired shares, payable in September.

In a separate but related development, Safaricom has proposed amending its articles of association to bar the use of retained earnings for share buybacks. The resolution, to be tabled at the July 31 annual general meeting, would restrict directors from deploying reserves to acquire the company’s own shares, channelling capital instead into the business or other investments. The move comes as Kenya’s buyback regulations, introduced in late 2021, have seen limited uptake among listed firms. The next milestones to watch are the completion of e&’s share transfer to financial institutions pending Vega’s regulatory clearances, and the Safaricom shareholder vote on the buyback restriction at the end of July.