Kenya’s government has sold a 15% stake in telecom giant Safaricom for KSh240.5 billion, securing a vital cash injection while handing majority control of the country’s most valuable company to South Africa’s Vodacom.
National Treasury Cabinet Secretary John Mbadi confirmed the transaction on Thursday, saying 6.01 billion ordinary shares were sold at KSh34 each to Vodafone Kenya Limited – a vehicle jointly owned by Vodacom Group and Britain’s Vodafone. An extra KSh40.2 billion paid upfront for future dividends on the remaining government shares lifts the total value to just over KSh244.5 billion.
Premium price and new ownership structure
“This is a well-considered decision that has earned the government a 26.6% premium,” Mbadi said, pointing out that Safaricom shares currently trade at around KSh28 on the Nairobi Securities Exchange.
Before the sale, the government held 35%, Vodacom 35%, Vodafone 5% and the public (through the NSE) 25%. After completion, the state’s direct and indirect stake drops to 20%, while Vodacom will control 55% following an internal transfer of Vodafone’s interests.
The deal is the biggest ownership shift in Safaricom since its 2008 initial public offering and more than doubles Treasury’s KSh150 billion privatisation target for the current financial year.
Funds to seed infrastructure push
Proceeds will become seed capital for the new National Infrastructure Fund and Sovereign Wealth Fund. Officials say the fund aims to attract private investors on a 10-to-1 leverage basis, potentially unlocking up to KSh600 billion for roads, dams, energy, water, airports and agriculture.
The move is part of President William Ruto government efforts to reduce reliance on borrowing and new taxes at a time when public debt exceeds 70% of GDP and debt-servicing costs continue to rise.
Safeguards remain in place
Mbadi stressed that national interests remain protected through existing laws on data privacy, cybersecurity, spectrum allocation and payment systems. “We retain significant influence through our remaining stake and board representation,” he added.
Vodacom strengthens East Africa foothold
Vodacom welcomed the acquisition, saying the roughly R36 billion (about KSh244 billion) transaction strengthens its position across East Africa.
Safaricom, best known globally for its M-Pesa mobile-money service, remains Kenya’s largest company and the cornerstone of the country’s digital economy.
Regulatory hurdles ahead
The transaction still needs approval from the Communications Authority of Kenya, parliamentary committees and public consultation. If cleared, analysts say it could pave the way for further privatisations and restore investor confidence in East Africa’s biggest economy.
For now, Treasury has turned one of its crown jewels into immediate cash, trading partial control for faster infrastructure delivery and a lighter debt burden.
