NAIROBI, Kenya — The National Treasury has initiated the process of selling a 15pc stake in Safaricom PLC to the Vodacom Group, in a major transaction expected to raise significant resources for development financing amid tightening fiscal conditions.
Appearing before a joint committee of the National Assembly, Treasury Cabinet Secretary John Mbadi said the proposed partial divestiture is projected to generate approximately Sh204.3 billion, with total proceeds estimated at Sh244.5 billion once an upfront dividend monetisation component is included.
Under the proposal, the government plans to sell 6,009,814,200 shares, representing 15 per cent of Safaricom, at a price of Sh34 per share.
Mbadi told lawmakers that the offer price reflects a 23.6 per cent premium over the six-month volume-weighted average price as at December 2025.
Upon completion of the transaction, the government’s shareholding in Safaricom would fall to 20pc, while Vodacom Group’s stake would rise to 55pc, consolidating ownership interests previously split between the government and Vodafone.
The Cabinet Secretary, who appeared alongside Treasury Principal Secretary Chris Kiptoo, said the proceeds would be used as seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund, marking a shift toward alternative financing models.
“The approach reflects a move towards innovative financing mechanisms as fiscal space tightens,” Mbadi said, adding that private sector participation would play an increasing role in delivering Kenya’s development agenda.
According to the Treasury, funds raised from the divestiture would be channelled into priority sectors, including energy, roads, water, airports, and digital infrastructure, while reducing reliance on public borrowing and taxation.
Mbadi assured lawmakers that safeguards had been incorporated to protect the public interest following the transaction.
These include the State retaining two board seats at Safaricom, employment stability commitments for a defined period, requirements on board leadership, and continued support for the Safaricom Foundation.
On the legal framework, the Cabinet Secretary said the transaction is being undertaken in line with the Privatization Act, 2025 and Section 87A of the Public Finance Management Act, which requires parliamentary consideration within 28 sitting days.
He added that the proposed sale remains subject to regulatory approvals from the Capital Markets Authority, the Central Bank of Kenya, and the Competition Authority of Kenya.
Mbadi told the committee that the divestiture aligns with broader reforms aimed at clarifying the government’s role as a policy maker and regulator, while allowing the private sector to lead in commercial operations.
He further cited the scale of the transaction as a vote of confidence in Kenya’s capital markets, saying the Nairobi Securities Exchange has the capacity to accommodate large and complex transactions.
