The Kenyan government has unveiled plans to sell a 15 percent stake in Safaricom, valued at Sh240.5 billion, to finance the National Infrastructure Fund and the Sovereign Wealth Fund. The move is part of the government’s strategy to reduce dependence on debt and taxes for national development.
National Treasury CS John Mbadi confirmed the sale, noting that it requires approvals from regulatory bodies, Parliament, and public stakeholders. The deal will grant Vodacom a 55 percent majority stake, while the government retains 20 percent ownership, ensuring continued influence over Safaricom’s strategic decisions.
“The sale of 6,009,814,200 shares at Sh34 each represents a 26.5 percent premium. Our remaining 20 percent stake allows us to influence key decisions. Critical national safeguards, including data protection, cybersecurity, and spectrum allocation, remain protected,” Mbadi said.
The funds will support major infrastructure projects across Kenya, including roads, dams, and energy initiatives, with the government targeting Sh600 billion for the funds.
The transaction includes an internal reorganisation where Vodacom acquires Vodafone International Holdings B.V.’s 12.5 percent stake in Vodafone Kenya, giving it full control. Vodafone Kenya will also make an upfront payment of Sh40 billion for the government’s residual 20 percent stake.
Once complete, the sale will deliver Sh240.5 billion to the government, bolstering long-term development and financial stability.
