Safaricom PLC is at the centre of one of the largest corporate transactions in Kenya’s history, with the government expecting to receive Sh204.3 billion by Friday from the sale of an additional 20 per cent stake in the telecommunications company.
According to John Mbadi, the transaction has been finalized after the Court of Appeal of Kenya cleared the way for its completion.
The deal involves the sale of 6,009,814,200 ordinary shares to Vodacom Group at Sh34 per share.
Vodacom Becomes Majority Shareholder
Once the transaction is completed, Vodacom’s shareholding in Safaricom will rise to 55 per cent, making the South African telecommunications company the majority shareholder.
The Government of Kenya will retain a 20 per cent stake in the company, which remains listed on the Nairobi Securities Exchange.
The agreement was initially announced in December 2025.
Speaking during an interview on Citizen TV, Mbadi said all legal challenges had been resolved.
“We don’t have any legal hurdles now and we have concluded the transaction. I’m very confident that on Friday, we will have the money in our accounts, that is the over Sh200 billion,” he said.
Funds to Go to Infrastructure
Mbadi said the proceeds will be deposited into the National Infrastructure Fund, rather than the Consolidated Fund.
He noted that the fund has also received Sh103 billion generated from the initial public offering of Kenya Pipeline Company.
According to the Treasury CS, the National Infrastructure Fund is intended to leverage public capital alongside private investment to finance commercially viable projects.
The government plans to use the funds to support strategic infrastructure projects, including:
- Road construction and upgrades
- Energy projects
- Water infrastructure
- Airport development
Why Not the Consolidated Fund?
Mbadi dismissed proposals that the proceeds should be paid into the Consolidated Fund, arguing that doing so would be contrary to the legal framework governing the transaction.
The Consolidated Fund is the principal account into which national government revenues are paid and from which most public expenditure is financed, except where legislation provides for an alternative arrangement.
If completed as scheduled, the Sh204.3 billion transaction will rank among the largest capital-raising exercises involving a listed Kenyan company and represents a significant investment in the country’s infrastructure financing strategy.
