The government’s plan to offload an additional stake in Safaricom hinges on Cabinet approval, as the Treasury seeks to raise funds through the sale of state-owned assets to bridge the widening fiscal deficit.
Safaricom, Kenya’s most valuable company, remains a key target in the government’s renewed privatisation push, but political consensus at the highest level is proving to be the critical hurdle.
Sources within the Treasury indicate that preliminary discussions have been held about selling a portion of the government’s 35 percent shareholding in Safaricom, with the aim of unlocking billions of shillings.
However, any decision to proceed requires formal Cabinet endorsement, given Safaricom’s strategic role in the economy and its dominant position in the telecommunications sector.
“The proposal is on the table, but it will only move forward with Cabinet’s approval,” said a senior Treasury official who spoke on condition of anonymity. “There are policy and political considerations that must be weighed before such a significant asset is put on the market.”
The Kenyan government holds its Safaricom shares through Telkom Kenya and directly via the Treasury. Vodafone and Vodacom jointly own a controlling 40 percent stake in the telecoms giant, while the remaining shares are publicly traded on the Nairobi Securities Exchange.
Analysts say that a partial divestment of Safaricom shares could generate much-needed revenue to fund development projects, reduce borrowing, and ease pressure on public debt.
However, such a move could also face public and parliamentary scrutiny, especially regarding the valuation, timing, and the long-term impact on state influence over a company that plays a central role in Kenya’s digital and financial infrastructure.
Safaricom’s strong performance and steady dividends have made it one of the most reliable revenue sources for the government. In the financial year ending March 2025, the company declared a record dividend payout, reinforcing its attractiveness to investors.
With mounting pressure to meet fiscal targets and re-energize the privatisation agenda, the ball is now squarely in the Cabinet’s court.
Should it approve the sale, the move would mark a significant step in Kenya’s efforts to reduce state involvement in commercial enterprises and attract more private capital into the economy.
Written By Ian Maleve
