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Kenya Announces Partial Safaricom Share Sale to Fund Infrastructure
The Government of Kenya has announced plans to partially divest its shares in Safaricom PLC. This move marks a significant step in the country’s long-term economic and fiscal strategy.
The National Treasury explained that the Government aims to raise non-tax revenue to fund key infrastructure projects while strengthening financial resilience through the National Infrastructure Fund and the Sovereign Wealth Fund.
During a Safaricom event, Cabinet Secretary for the National Treasury, Hon. FCPA John Mbadi Ng’ongo, stressed that the Government will sell only a portion of its shares and will continue to hold a strategic stake in the company.
“This is a partial divestment,” he said. “The Government will keep a meaningful share in Safaricom. Our decision follows rigorous analysis, independent valuation, and full compliance with all legal requirements.”
Strengthening Investments and Reducing Reliance on Debt
The proposed transaction supports Kenya’s goal of generating revenue responsibly, especially without adding pressure on taxpayers. According to the Treasury, the partial sale is expected to raise KES 240–244 billion.
These funds will serve as seed capital for the Sovereign Wealth Fund and the National Infrastructure Fund. Together, these funds will direct investments into sectors such as energy, roads, water, and airport development.
CS Mbadi noted that this direction aligns with President William Ruto’s fiscal agenda.
“This divestment helps us reduce reliance on debt and ease the need for higher taxes,” he said. “It allows us to channel resources to strategic infrastructure that can stimulate economic growth.”
Kenya Announces Partial Safaricom Share Sale to Fund Infrastructure
Regulatory Oversight and Greater Transparency
The divestment process will follow the full legal framework. First, the Cabinet will consider the proposal. Afterwards, it will go to Parliament for approval.
In addition, several regulators will review the transaction, including the Capital Markets Authority, the Central Bank of Kenya, the Communications Authority of Kenya, and the Competition Authority of Kenya.
Moreover, the Treasury assured Kenyans that all national safeguards covering data protection, cybersecurity, spectrum allocation, and national payment systems will remain fully protected.
“This is a shareholder-level adjustment, not an operational takeover,” CS Mbadi added. “Safaricom’s Board and management will continue overseeing daily operations.”
Vodacom and Safaricom Express Confidence
Safaricom’s long-term partners welcomed the announcement. Vodacom Group CEO Shameel Joosub reaffirmed Vodacom’s commitment to Safaricom’s growth and Kenya’s digital transformation.
“Our partnership with Kenya spans more than two decades,” he said. “We remain long-term investors who support Safaricom’s innovation and expansion.”
Safaricom CEO Peter Ndegwa also expressed confidence, noting that the company’s leadership and strategic focus remain unchanged.
“We remain committed to delivering digital and financial products that uplift our customers and support Kenya’s digital ambitions,” he said.
A Key Step in Kenya’s Fiscal Transformation
This partial divestment marks a deliberate milestone in the management of public resources. It lays the foundation for a more sustainable fiscal future by linking State investments to long-term economic growth rather than short-term borrowing.
Once Cabinet, Parliament, and the relevant regulators complete their reviews, the Treasury will share more details with the public through the required disclosure channels.
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