The National Treasury has initiated plans to sell a 15 per cent stake in Safaricom PLC to the Vodacom Group, aiming to raise resources for key development projects.
Appearing before a joint committee of the National Assembly, the National Treasury Cabinet Secretary John Mbadi said the proposed sale is expected to generate approximately Sh204.3 billion.
This Includes an upfront dividend monetisation component, total proceeds are projected at Sh244.5 billion.
Under the proposal, the government will sell 6,009,814,200 shares, representing 15 per cent of Safaricom, for Sh34 per share, a 23.6 per cent premium over the six-month volume-weighted average price as of December 2025.
Following the proposed transaction, the government is expected to retain a 20 per cent stake, while Vodacom Group’s ownership would rise to 55 per cent, consolidating stakes previously held by the government and Vodafone.
Mbadi emphasised that the move reflects a strategic shift toward alternative financing mechanisms amid tightening fiscal conditions, with private sector participation playing an increasing role in meeting the country’s development needs.
“Sectors like energy, roads, water, airports, and digital infrastructure will be given first priority, while reducing reliance on borrowing and taxation,” CS Mbadi stated.
To safeguard public interest, the government will retain two board seats at Safaricom. The transaction includes commitments on employment stability, board leadership requirements, and continued support for the Safaricom Foundation.
The CS Mbadi said the proceeds will provide seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund.
By Bonface Musyoka
