South Africa's Bold Move: Claims Right to Appoint Safaricom's Next CEO

Victoria from Techpoint delivers a comprehensive update on significant developments across the African tech and transport sectors, focusing on a major corporate control battle in Kenya, new safety regulations for e-hailing services in South Africa, and Uber's strategic push into the Kenyan logistics market.

In Kenya, the future leadership of Safaricom, East Africa's most profitable company and a backbone of the Kenyan economy, hangs in the balance amidst a proposed acquisition by South Africa's Vodacom. A bombshell revealed in a US Securities and Exchange Commission (SEC) filing on May 22, 2026, details a new shareholder agreement. If Vodacom acquires a majority stake by purchasing the Kenyan government’s 15% stake and Vodafone’s remaining 5%, it would raise Vodacom’s total ownership to 55%. This agreement grants Vodacom, via its holding vehicle Vodafone Kenya Limited (VKL), the power to determine Safaricom’s next CEO from a shortlist of nominees. The deal would effectively transform Safaricom into a Vodacom subsidiary, requiring it to adhere to Vodacom’s policies on everything from financial reporting to ethics. While VKL has agreed to consult the Kenyan government on CEO appointments and ensure the chairman is of Kenyan nationality, with most senior executives remaining Kenyan, the core power of selecting the company's daily executive leader would shift to Johannesburg. This move is particularly sensitive given the political interest in Safaricom’s leadership, especially after Peter Ndegwa became the first Kenyan CEO in 2019. The KSh 204.3 billion deal, which also includes an upfront dividend of KSh 40.2 billion to the Kenyan government on its remaining 20% stake, received initial approvals but has been legally suspended by Kenya’s High Court, leaving the transaction in limbo.

Meanwhile, South Africa is finally formalizing regulations for its e-hailing industry in response to growing safety concerns. Transport Minister Barbara Creecy confirmed new requirements under the National Land Transport framework, mandating panic buttons for both drivers and passengers, live trip tracking, and systems to provide passengers with driver photos and vehicle details upon arrival. Dashcams are also now mandatory, intended to deter crime and aid investigations. However, critics note significant limitations: panic buttons are not directly linked to the South African Police Service (SAPS), with operators expected to develop their own, varied response systems. For instance, Uber partners with Johannesburg-based Aura for private security responses. The regulations emerge against a backdrop of a severe security crisis for e-hailing drivers, who frequently face hijackings, robberies, and murders by criminals posing as passengers. While the government aims to formalize the industry and improve licensing, industry figures like Elijah Lekgowane, president of the National E-Hailing Federation of South Africa (NEFSA), argue that panic buttons are only a partial solution and mandatory vehicle branding could make drivers more visible targets. The broader issues of driver safety and historical tensions with the traditional taxi industry remain largely unaddressed.

In Kenya, Uber is making a significant push into the logistics sector by applying to the Communications Authority of Kenya for a national courier operator licence. This strategic move aims to enable Uber to officially collect, transport, and deliver parcels nationwide, leveraging its existing driver network and app infrastructure. If approved, Uber would directly compete with established courier firms and even the struggling state-owned Postal Corporation of Kenya (Posta), offering consumers and small and medium-sized enterprises (SMEs) faster, more flexible, and on-demand delivery options within a single app. This aligns with a broader trend across Africa where ride-hailing platforms, including competitors like Bolt, are converging into logistics companies by utilizing shared driver networks and routing systems. The expansion underscores the critical role of delivery infrastructure in the digital economy, especially as e-commerce and online retail continue to grow. Uber’s evolution in Kenya since its 2015 launch, from ride-hailing to food delivery with Uber Eats, has laid the groundwork for this diversification. Stricter ride-hailing regulations introduced around 2022 further prompted platforms like Uber to formalize operations and diversify as a survival strategy, positioning last-mile logistics as a high-value battleground in a market where digital commerce is outpacing traditional logistics systems.