The Government of Kenya has unveiled plans to partially sell its shareholding in Safaricom in a move aimed at unlocking capital for national development while reducing reliance on debt financing.
In a public notice, the National Treasury confirmed that the proposed divestment is being undertaken in line with the provisions of the Public Finance Management Act (PFMA) and other existing legal frameworks governing the management and disposal of government investments in state-linked companies.
Before any transaction can proceed, the proposal will undergo a sequence of statutory approvals. The plan will first be submitted to Cabinet for consideration, after which it will be tabled before Parliament as required under both the PFMA and relevant constitutional provisions.
If approved, the partial sale is expected to generate approximately Sh240.5 billion, marking one of the most significant asset disposals ever undertaken by the State.
According to the Treasury, the anticipated proceeds will be channeled into priority sectors under the planned National Infrastructure Fund and Sovereign Wealth Fund, targeting critical areas including energy, roads, water and airport development. The move forms part of the government’s strategy to redirect funds into long-term economic enablers that can support sustainable growth.
The transaction will also be subjected to approvals by key regulatory bodies, among them the Capital Markets Authority (CMA), Central Bank of Kenya (CBK), Communications Authority of Kenya, and the Competition Authority of Kenya. Each agency will assess the divestment within its mandate, covering aspects such as financial stability, market competitiveness and the protection of key telecommunications infrastructure.
In addition, the government has indicated that the process will include full public participation, transparency measures and regulatory disclosures to safeguard public interest and ensure accountability throughout the exercise.
Despite the reduction in equity, the State will still retain a meaningful strategic stake in Safaricom and will remain involved in the organisation’s long-term direction. The government has also reaffirmed that national interests — including data protection, cybersecurity, spectrum allocation, digital infrastructure and payment systems — will remain fully protected under Kenya’s regulatory framework.
Commenting on the proposal, the Cabinet Secretary for the National Treasury, FCPA John Mbadi, stated:
“The Government remains firmly committed to prudent fiscal management and sustainable economic growth. This proposed partial divestment is guided by the need to mobilise non-tax revenue in a responsible and forward-looking manner, reducing pressure on taxpayers and limiting our reliance on debt to finance national priorities. The proceeds will form part of the seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund, helping us build the long-term financial foundations our country needs.
This aligns with the vision articulated by H.E. President William Ruto: a Kenya that is less dependent on debt and less reliant on increasing taxes to fund development. It is a good and timely move for our nation.”
Safaricom’s majority shareholder, Vodacom Group, has also reaffirmed its commitment to the company and Kenya’s digital future. Speaking on the proposed divestment, Vodacom Group CEO Shameel Joosub said:
“Vodacom welcomes this development and remains fully committed to Safaricom’s long-term growth and success. Our partnership with Kenya spans over two decades, and we continue to view Safaricom as a strategically important business with strong fundamentals and significant potential. We will remain responsible, long-term investors and partners in advancing Kenya’s digital and financial inclusion ambitions.”
Safaricom itself has sought to assure customers and stakeholders of continuity in its operations and strategic focus. Safaricom Group CEO Peter Ndegwa stated:
“We appreciate the Government’s continued confidence in Safaricom and its recognition of the role we play in Kenya’s digital and economic transformation. Safaricom’s operations, leadership, and strategic direction remain strong, and we continue to focus on delivering innovative products and services that uplift our customers and support Kenya’s digital ambition.”
The Treasury noted that further updates will be provided once Cabinet, Parliamentary and regulatory reviews are completed and the transaction structure is formally finalised.
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