Kenya Moves to Sell Part of Its Safaricom Stake to Boost Infrastructure and Grow Wealth Funds
By Peace Muthoka
The Government has announced plans to sell part of its stake in Safaricom to raise money for major national projects and strengthen Kenya’s long-term financial position.
The National Treasury said the plan follows the Public Finance Management Act and all laws that guide the sale of government shares in State-linked companies. The proposal now moves to Cabinet for review. After that, it will go to Parliament for approval as required by the Constitution and national investment laws.
The partial sale is expected to raise about KSh240.5 billion. The money will help fund key infrastructure projects in energy, roads, water and airports. It will also provide seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund.
The Government says the move marks a clear shift toward raising non-tax revenue. It aims to reduce pressure on taxpayers and cut the country’s reliance on public debt.
The transaction will undergo scrutiny from all regulators. These include the Capital Markets Authority, the Central Bank of Kenya, the Communications Authority and the Competition Authority. Each regulator will review the deal under its mandate to ensure the stability of markets and the protection of national interests.
The Treasury also assured the public that the process will follow full disclosure and transparency rules. Citizens will take part in the process as required by law. The State will still hold a significant stake in the company after the sale and will continue to play a strategic role in its long-term growth.
The Government added that data protection, cybersecurity, digital infrastructure, spectrum allocation and national payment systems will remain fully protected under Kenyan law.
Treasury Cabinet Secretary John Mbadi said the plan supports the country’s long-term economic direction.
“The Government remains committed to prudent fiscal management and sustainable growth,” he said. “This partial divestment helps us raise non-tax revenue in a responsible way. It eases pressure on taxpayers and reduces reliance on debt. The money will support the National Infrastructure Fund and the Sovereign Wealth Fund. This move supports the President’s vision of a nation that depends less on debt and avoids raising taxes to fund development.”
Vodacom Group welcomed the move and promised continued support for Safaricom. Vodacom Group CEO Shameel Joosub said the company remains a long-term investor.
“Vodacom welcomes this development and remains fully committed to Safaricom’s long-term growth,” he said. “Our partnership with Kenya spans over two decades. Safaricom remains a strong business with great potential. We will continue to support Kenya’s digital and financial inclusion goals.”
Safaricom CEO Peter Ndegwa also affirmed the company’s strength and stability.
“We appreciate the Government’s continued confidence in Safaricom,” he said. “We remain focused on delivering innovative products and services that uplift our customers and support Kenya’s digital ambition.”
The National Treasury will share more details once Cabinet, Parliament and regulators complete their reviews.
