ADDIS ABABA, Ethiopia – President William Ruto has moved to shore up regional support for Safaricom’s expansion in Ethiopia as Kenya prepares to sell a significant stake in the telecommunications giant in one of the country’s largest privatisation deals in recent years.
During a visit to Addis Ababa, Ruto held talks with Ethiopian Prime Minister Abiy Ahmed, with discussions centring on deeper economic cooperation, regional stability in the Horn of Africa, and joint investments in the digital economy.
The two leaders agreed to support Ethiopia’s state-owned Ethio Telecom and Safaricom as they explore strategic joint investment opportunities across regional markets, a move that signals renewed political backing for Safaricom’s long-term ambitions in Ethiopia.
“Together, we reaffirm our shared commitment to stability, dialogue and African-led solutions, anchored in a common vision for stronger economic integration, digital growth and shared prosperity,” Ruto said after the meeting.
Kenya and Ethiopia will continue to deepen mutual cooperation while advancing regional peace and security in the Horn of Africa.Together, we reaffirm our shared commitment to stability, dialogue, and African-led solutions; anchored in a common vision for stronger economic
The push comes as the Kenyan government finalises plans to sell a 15 per cent stake in Safaricom, valued at about Sh240.5 billion, a transaction that will reduce the state’s shareholding from 40 per cent to 25 per cent.
National Treasury Cabinet Secretary John Mbadi has said the sale will provide seed capital for the newly established National Infrastructure Fund, which is intended to fast-track financing for major public projects.
Mbadi described the planned divestiture as “a well-considered decision”, noting that the government expects to earn a 26.6 per cent premium from the sale while retaining a significant stake in the country’s most profitable company.
“This is a strategic sale that unlocks value while ensuring the government remains a key shareholder,” he said.
Safaricom remains Kenya’s biggest telecommunications firm and one of the most valuable companies on the Nairobi Securities Exchange.
Apart from the government, its major shareholders include Vodacom, which holds 35 per cent, Vodafone with five per cent, and public investors, who collectively own 25 per cent.
Safaricom’s Ethiopian operations, launched after the firm won a telecoms licence in 2021, have faced operational and regulatory challenges but are widely seen as central to the company’s future growth.
Stronger political cooperation between Nairobi and Addis Ababa is expected to provide fresh momentum as the government seeks to maximise value from the upcoming share sale.
