NAIROBI, Kenya – The government is yet to receive the Sh204 billion generated from the sale of its 15 per cent stake in Safaricom to South Africa’s Vodacom, despite the landmark transaction being completed two weeks ago.
Central Bank of Kenya (CBK) Governor Kamau Thugge said the funds are expected to be reflected in the country’s foreign exchange reserves shortly, providing a significant boost to Kenya’s external financial position.
Speaking at the 23rd East African Banking School (EABS) Conference in Mombasa on Wednesday, Thugge said the inflow would increase Kenya’s foreign exchange reserves to nearly $16 billion, equivalent to almost seven months of import cover.
“We have seen our current account widen more than we had anticipated but luckily we have enough financial inflows including foreign direct investments. We’ve seen monies from Safaricom; it’s yet to hit our reserve position, but I think it’s just about to and that will take us to $16 billion, almost seven months of import cover,” Thugge said.
The government sold 6.01 billion Safaricom shares to Vodacom at Sh34 per share, raising Sh204 billion after the Court of Appeal cleared the transaction.
The deal formed part of Vodacom’s acquisition of an additional 20 per cent stake in Safaricom, making the South African telecommunications giant the majority shareholder with a 55 per cent stake.
Of the additional shares acquired, 15 per cent came from the Government of Kenya while five per cent was purchased from Vodafone Group Plc.
The Kenyan government retained a 20 per cent shareholding in the Nairobi Securities Exchange-listed telecommunications company.
First announced in December 2025, the $2.1 billion (Sh272 billion) acquisition ranks among the largest corporate transactions ever completed in Kenya.
National Treasury Cabinet Secretary John Mbadi previously said the government’s share of the proceeds would be channelled into the National Infrastructure Fund to finance priority projects, including roads, airports, energy and water infrastructure.
He also maintained that the transaction received parliamentary approval and was conducted transparently and within the law.
Thugge noted that Kenya’s foreign exchange reserves have continued to strengthen, supported by several major capital inflows.
These include the World Bank’s $750 million Development Policy Operation (DPO VII) budget support loan and proceeds from the Kenya Pipeline Company divestiture.
The CBK Governor added that another major foreign investment—the proposed $855 million acquisition of a 66 per cent stake in NCBA Group by South Africa’s Nedbank—is expected to further strengthen the country’s external reserves once completed.
According to Thugge, the improved reserve position has helped Kenya maintain a relatively stable exchange rate of around Sh130 against the US dollar for nearly two years despite ongoing global economic uncertainties and geopolitical tensions.
He expressed confidence that the country’s reserve cover would remain between 5.5 and six months of imports, providing adequate protection against potential external shocks, including any escalation of the Middle East conflict.
Thugge made the remarks during the five-day East African Banking School Conference at Diamonds Leisure Beach and Golf Resort in Mombasa, where banking leaders, regulators and financial experts are discussing “Navigating Credit Risk in the Digital Transformation Era.”