The Government of Kenya has announced a proposal to undertake a partial divestment of its shares in Safaricom PLC.
If approved, the State will sell 15% of its Safaricom stake to Vodafone Kenya. This transaction is expected to generate approximately KES 240.5 billion to KES 244.5 billion. Treasury has noted that the valuation reflects a 23.6% premium on the six-month volume weighted average price. The Government will still retain a significant stake in Safaricom even after the sale.
This will be Safaricom’s new ownership structure:
- Vodafone Kenya Limited – 55%
- Government of Kenya – 20%
- Retail Investors – 25%
Treasury Cabinet Secretary John Mbadi said the proceeds will become seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund. These two vehicles are expected to play a central role in long-term economic planning by supporting investment in energy, roads, water, airports and other strategic sectors.
Speaking at a Safaricom event, Mbadi said the decision was made after rigorous evaluation and independent valuation advice.
“Our intent is to strengthen Safaricom’s ability to invest in the next wave of digital infrastructure and services, from 5G and fibre to fintech and regional expansion. That ability to invest will benefit Kenyan consumers, businesses and the broader economy,” he said.
He added that the transaction does not alter Safaricom’s governance structure. The divestment is a shareholder level adjustment, not an operational takeover. Safaricom’s Board and management will continue to run the business while the Government remains a strategic investor.
Several regulators will review and approve the transaction, including the Capital Markets Authority, the Communications Authority of Kenya, the Central Bank of Kenya and the Competition Authority of Kenya.
Both Safaricom and Vodacom Group have welcomed the development. Vodacom Group CEO Shameel Joosub said, “Safaricom is a strategically important business with strong fundamentals and significant potential. We remain responsible long-term investors and partners.”
Safaricom CEO Peter Ndegwa echoed the sentiment, saying, “We continue to focus on delivering innovative products and services that uplift our customers and support the country’s digital ambition.”
Strong Financial Performance
The announcement comes a few weeks after Safaricom released its HY26 results, which showed the company in one of its strongest financial positions in years. Net income rose by 52.1% to reach KSh 42.8 billion, the highest interim profit in the company’s history. Service revenue grew by 11.1% to KSh 199.9 billion.
M-Pesa’s revenue grew by 14.1% to KSh 88.1 billion. Mobile data revenue surpassed voice revenue for the first time.
The proposal now moves through the formal review stages. Parliament will have a key role in approving the divestment and in passing the instruments required to fully operationalise the National Infrastructure Fund and the Sovereign Wealth Fund.
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