The National Treasury has unveiled plans to sell a 15 per cent stake in Safaricom PLC to the Vodacom Group in a move aimed at raising funds for major development projects.
Appearing before a joint committee of the National Assembly, Treasury Cabinet Secretary John Mbadi said the proposed sale is expected to raise about Sh204.3 billion. When combined with an upfront dividend monetisation arrangement, total proceeds from the transaction could reach approximately Sh244.5 billion.
Under the proposal, the government plans to offload 6,009,814,200 Safaricom shares at Sh34 per share. This price represents a 23.6 per cent premium compared to the company’s six-month volume-weighted average share price as of December 2025.
If the transaction goes through, the government’s shareholding in Safaricom will reduce to 20 per cent, while Vodacom Group’s stake will increase to 55 per cent, effectively consolidating ownership interests previously held by the government and Vodafone.
CS Mbadi, who was accompanied by Treasury Principal Secretary Chris Kiptoo, told lawmakers that the funds raised would be used as seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund, both aimed at supporting long-term economic growth and development.
