Kenya’s government has sold a 15% stake in Safaricom to Vodacom Group for KSh244.5 billion, with Treasury Cabinet Secretary John Mbadi confirming that the entire amount will be channelled into critical infrastructure projects.
Deal sealed in Nairobi
Treasury Cabinet Secretary John Mbadi and Vodacom Group chief executive Shameel Joosub signed the agreement in Nairobi on 4 December 2025.
The transaction sees Vodafone Kenya Limited, a Vodacom subsidiary, acquire six billion ordinary shares from the government at KSh34 each, generating KSh204.3 billion.
An additional KSh40.2 billion in upfront dividend rights brings the total value to KSh244.5 billion – a 23.6% premium on the six-month volume-weighted average price.
Seed money for new funds
Mbadi described the proceeds as seed capital for the proposed National Infrastructure Fund and Kenya Sovereign Wealth Fund. The money will finance projects in energy, roads, water and airports – pillars of President William Ruto plan to raise KSh5 trillion for infrastructure without adding to public debt.
“This partial divestiture reflects a broader national objective: mobilising non-tax revenue responsibly while preserving the national interest,” Mbadi said. He urged Parliament to fast-track the legal instruments required to operationalise both funds before the transaction closes in early 2026.
Government retains significant holding
After the sale, the government will hold 20% of Safaricom, down from 35%. Vodacom’s effective stake rises to 55% following an internal reorganisation in which it acquires the remaining 12.5% of Vodafone Kenya from Vodafone International Holdings B.V., giving it 100% ownership of the local subsidiary. The remaining 25% stays with public investors.
Safaricom leadership unchanged
Safaricom chief executive Peter Ndegwa said the company’s operations, leadership and strategy remain unaffected. “We continue to focus on delivering innovative products and services that support Kenya’s digital ambition,” Ndegwa said.
Vodacom’s Joosub echoed the commitment to Safaricom’s long-term growth, particularly in 5G, fibre, fintech and regional expansion.
Mixed market reaction
The announcement triggered mixed reactions on X. Some traders warned of short-term volatility and possible sell-offs due to dividend uncertainty, while others welcomed deeper integration between Safaricom and Vodacom as positive for mobile money and digital services.
Fiscal breathing space
Kenya’s public debt stands at more than KSh10 trillion, or roughly 68% of GDP, with debt servicing eating up nearly half of tax revenue. The Safaricom sale follows the repayment of a USD2 billion Eurobond earlier in 2025 that drained foreign reserves.
Economists say the one-off windfall offers temporary relief but structural reforms are still needed to close the fiscal gap.
Safaricom remains East Africa’s most valuable listed company, with a market capitalisation above KSh1.3 trillion and more than 45 million customers. Its M-Pesa platform processes billions of shillings daily and has been key to financial inclusion across the region.
The government has collected over KSh540 billion in dividends from Safaricom since the company’s founding, making the partial stake sale a calculated move to unlock value for national development priorities.
