Safaricom’s investors are expected to vote on a special resolution that will shield M-Pesa, one of its major cash-cows, from the growing interests of its major shareholder, Vodafone.
Directors appointed by the London-based multinational or its subsidiaries will not vote on any agreements between their companies and M-Pesa, a move that aims to eliminate the conflict of interest in such transactions.
“Directors that are appointed by VKL [Vodafone Kenya Limited] shall be excluded from voting on agreements directly related to M-Pesa and the mobile money platform, to which a Vodafone group member and the company are parties,” the special resolution says.
The resolutions, which will be put to shareholders’ vote at a general meeting on September 15, come after Vodafone restructured its ownership in Safaricom by spinning off a 35 per cent stake to its South African unit, Vodacom.
Vodafone Plc, which retained a five per cent stake in Safaricom through the investment vehicle VKL, is expected to cease pushing for any strategies that benefit its subsidiaries at the expense of the Kenyan firm.