Kenya Announces Safaricom Divestment to Boost Infrastructure Investment

The Government of Kenya has formally announced Safaricom divestment, confirming plans to sell part of its shareholding and channel the proceeds into long-term national development through the National Infrastructure Fund and the Sovereign Wealth Fund.

In a statement released by the National Treasury, the Government disclosed that Vodafone has acquired a 15% stake previously held by the State for Ksh 244.5 billion, following a process conducted under the Public Finance Management Act and all applicable regulations governing government-linked corporations.

Safaricom Divestment Process and Regulatory Review

Treasury noted that the Safaricom divestment has followed the full legal sequence, including Cabinet consideration, and will progress to Parliament for approval as required by the PFMA and the Constitution.

The transaction will also undergo review by relevant regulators including the Capital Markets Authority, Central Bank of Kenya, Communications Authority, and the Competition Authority to ensure compliance with financial, telecommunications, and competition laws.

The Government emphasised that transparency, public participation, and full disclosure remain integral to the process.

Under the new shareholding structure, Vodafone now holds 55%, the Government retains 20% as a strategic stake, and the public maintains 25%.

Premium Offer and Fiscal Benefits

The Treasury confirmed that Vodafone purchased the stake at Ksh 34 per share, representing a 23.6% premium on the six-month volume-weighted average price a valuation officials described as financially sound and beneficial to the country.

Treasury Cabinet Secretary FCPA John Mbadi said the Safaricom divestment aligns with President William Ruto’s vision of reducing reliance on debt and easing pressure on taxpayers.

“This proposed partial divestment is guided by the need to mobilise non-tax revenue in a responsible and forward-looking manner,” he said. “The proceeds will form part of seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund. It is a good and timely move for our nation.”

The Government reiterated that the funds will not be used for recurrent expenditure and will instead be ring-fenced for long-term assets such as energy, water, airports, and road infrastructure.

Vodafone Kenya will also provide an upfront payment to the Government in lieu of future dividends on the State’s remaining 20% stake supporting short-term fiscal stability.

Safaricom Remains Secure: Governance and National Interests Protected

Addressing public concern, Treasury clarified that the Safaricom divestment is a shareholder-level adjustment, not an operational takeover. Safaricom’s management, Board, and day-to-day operations remain unchanged, while national safeguards including data protection, spectrum allocation, cybersecurity, and critical digital infrastructure remain fully protected under Kenyan law.

The Government added that retaining a 20% stake ensures ongoing influence and protection of national strategic interests.

Industry ReactionsVodacom Group CEO Shameel Joosub welcomed the development, reaffirming the multinational’s long-term commitment:

“We remain fully committed to Safaricom’s long-term growth and success. Safaricom is a strategically important business with strong fundamentals and significant potential.”

Safaricom CEO Peter Ndegwa also acknowledged the Government’s confidence:

“We appreciate the continued support and remain focused on delivering innovative products and services that uplift our customers and advance Kenya’s digital ambition.”

Safaricom Divestment and Long-Term Wealth Creation

The Treasury noted that Kenya has historically privatised assets without converting those proceeds into enduring national wealth. President Ruto’s State of the Nation Address emphasized that all privatisation proceeds including those from the Safaricom divestment will now be invested exclusively in long-term assets to multiply public benefits.

Further details are expected once Cabinet, Parliament, and regulatory authorities conclude their reviews.

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