Kenya to Sell 15% Safaricom Stake in Landmark Move to Fund Infrastructure, Boost Fiscal Space.

Kenya to Sell 15% Safaricom Stake in Landmark Move to Fund Infrastructure, Boost Fiscal Space.

From left: Vodacom Group CEO Shameel Joosub and National Treasury Cabinet Secretary John Mbadi sign MoUs during the Treasury’s Market Update and MoU Signing Ceremony at the JW Marriott Hotel in Nairobi on Tuesday.

By Jeff Oyugi 

Nairobi - December 4, 2025

The Government of Kenya has announced a landmark plan to partially offload its shareholding in Safaricom Plc, unlocking an estimated KSh 240.5 billion to finance critical national infrastructure without raising taxes or expanding public debt.

Treasury Cabinet Secretary John Mbadi, who unveiled the plan in Nairobi on Tuesday, described the divestment as a “strategic, carefully analysed and value-driven decision” designed to accelerate Kenya’s next phase of economic growth.

Mbadi said the transaction representing a 15 per cent stake follows independent valuation, rigorous due diligence, and full adherence to the Public Finance Management Act.

“This is a partial divestment. The Government will retain a significant stake in Safaricom, and our strategic interests remain fully protected,” he said.

The Treasury chief said proceeds will be channelled to the National Infrastructure Fund and the Sovereign Wealth Fund, established to finance high-impact projects in energy, transport, digital infrastructure, water and other priority sectors.

He emphasised that the sale will command a 23.6% premium above the six-month average market price.

“We are selling at a premium, not a discount. This transaction strengthens fiscal sustainability and allows us to build essential national infrastructure without burdening taxpayers,” Mbadi said.

To address public concern over control of Kenya’s most valuable company, Mbadi outlined several legally binding undertakings agreed with Vodacom, the anchor institutional investor expected to absorb most of the shares on offer.

These include Safaricom’s brand, trademarks, and identity that will remain intact, protection of local suppliers and employees, continuity of the Safaricom Foundation and M-Pesa Foundation, and assurance that Safaricom’s corporate governance remains unchanged

“This is a shareholder-level transaction. Safaricom’s management and operations remain firmly Kenyan and fully independent,” he said.

Safaricom Chairman Adil Arshed Khawaja welcomed the announcement, assuring customers and shareholders that the telco’s market leadership and growth trajectory remain secure.

“This development does not alter our governance structure or strategic direction. Safaricom’s fundamentals remain strong, resilient, and aligned to long-term value creation,” he said.

Khawaja said the company continues to expand its digital and financial services footprint, with 50 million customers in Kenya and 10 million in Ethiopia, making it one of East Africa’s most influential technology brands.

Vodacom Group CEO Shameel Joosub hailed the move as a deepening of a successful public-private partnership that has positioned Safaricom as a regional and global leader in mobile connectivity and financial technology.

“Safaricom is a global benchmark for digital innovation and social impact. We are proud to deepen our partnership as we help drive Kenya’s digital economy and regional expansion,” he said.

Joosub said Vodacom’s increased investment signals confidence in Kenya’s economic prospects and regulatory environment, adding that lessons from the M-Pesa and Safaricom Foundations continue to shape social programmes across Africa.

Economic analysts say the partial divestment mirrors global trends where governments unlock capital tied up in mature, high-value assets to fund development. The transaction is expected to deepen Kenya’s capital markets and attract new institutional investors.

Mbadi said the Treasury will continue to engage Parliament, regulators, and the public to ensure the process remains transparent and accountable.

“This divestment is a vote of confidence in Kenya’s future. It secures strategic national interests while mobilising capital to build the infrastructure that will power our next generation of growth,” he said.