The Government of Kenya has announced a strategic plan to partially divest its shareholding in Safaricom Plc, a move Treasury Cabinet Secretary (CS) John Mbadi says will mobilize non-tax revenue to finance critical national infrastructure and drive Kenya’s next phase of economic growth.
He said the decision follows ‘rigorous analysis, independent valuation, and full compliance with the Public Finance Management Act, emphasizing that the divestment was structured to preserve the Government’s strategic interests while attracting long-term investment.
“Let me be clear from the outset, this is a partial divestment. The Government will continue to maintain a significant stake in Safaricom, and our strategic interests remain fully protected,” he clarified.
Mbadi added that the move reflects the State’s broader objective of unlocking private sector participation in public investment projects, enhancing fiscal sustainability, and ensuring that public resources are deployed efficiently.
Notably, the CS disclosed that the transaction is expected to raise approximately Sh240.5 billion, subject to foreign exchange variations.
He reported that the proceeds from the divestment will be channeled into the National Infrastructure Fund and the Sovereign Wealth Fund, both of which are designed to finance priority investments in energy, transport, water, digital infrastructure, and other strategic sectors crucial for national development.
“This 15 percent divestiture attracts a 23.6 percent premium on the six-month volume-weighted average price. We are selling at a premium, not a discount,” announced Mbadi, insisting that the divestment will allow Kenya to fund essential infrastructure without increasing debt or raising taxes.
Further, Mbadi stressed that the divestment is purely a shareholder-level transaction and will not affect Safaricom’s daily operations, corporate governance, or strategic direction.
“Safaricom’s management and board remain firmly in charge of operations. The Government retains its role as a strategic shareholder and has secured safeguards that protect Kenya’s long-term interests,” he explained.
On the other hand, the CS outlined key undertakings agreed with Vodacom, which include ensuring that the Chairman and CEO remain Kenyan citizens, preserving Safaricom’s brand and trademarks, maintaining local supplier engagement, protecting employees, and ensuring that the Safaricom Foundation and M-Pesa Foundation continue operating in Kenya.
These measures, Mbadi assured, guarantee that Safaricom continues to serve national priorities while remaining a strong and reliable company in the region.
Concurrently, Safaricom PLC Chairman Adil Arshed Khawaja welcomed the Government’s announcement, assuring shareholders, customers, and the public that the company’s fundamentals remain strong and its long-term strategy unchanged.
“This development is purely at the shareholder level. It does not alter our governance structure, management team, operating model, or strategic direction,” Khawaja highlighted.
He added that Safaricom continues to demonstrate financial resilience, with 50 million customers in Kenya and 10 million in Ethiopia, positioning it as a leading digital and financial services provider in East Africa.
Equally, Khawaja emphasized the company’s commitment to expanding digital services, financial inclusion, and social impact initiatives.
“Our ambition to digitize Kenya and the region remains uninterrupted. Safaricom’s fundamentals remain strong, operationally resilient and aligned to long-term value creation,” affirmed the Chairman.
As well, he welcomed Vodacom’s increased interest as a significant endorsement of Safaricom’s performance, governance, and growth potential.
“The Safaricom you know, trust, and love remains intact. Our purpose and strategy remain unchanged,” Khawaja reiterated.
Vodacom Group CEO Shameel Joosub expressed the company’s pride to deepen its investment in Safaricom, highlighting the strong public-private partnership that has helped position the telecoms company as a regional and global leader.
“We are really proud of our association. Safaricom stands today as a leader in East Africa and worldwide, built through strong public-private collaboration,” he echoed.
Additionally, Joosub noted that the partnership allows Vodacom to support Kenya’s digital economy, expand connectivity, and contribute to regional growth initiatives, particularly in Ethiopia where the group already serves over 11 million customers.
Also, the CEO highlighted Safaricom’s role in driving social impact through the Safaricom and M-Pesa Foundations.
“The work of these foundations has become a global benchmark. We have replicated lessons from Kenya in many other markets, and we remain committed to ensuring that social impact continues at home,” stated Joosub, adding that Vodacom’s investment reflects confidence in Kenya’s business environment, regulatory framework, and economic growth prospects.
“Our intention is to continue building on this success connecting more Kenyans, advancing digitization, and supporting the country’s economic development. We look forward to working with Safaricom’s leadership to create even more success,” he added.
Meanwhile, the Government’s decision to partially divest Safaricom aligns with global trends where States mobilise public capital from mature, high-value assets to fund infrastructure and strategic development projects. By attracting institutional investors and private sector participation, the transaction is expected to strengthen Kenya’s capital markets and encourage greater domestic investment in public infrastructure.
CS Mbadi, in a quick rejoinder, reaffirmed that the State will continue to engage Parliament, regulators, and the public throughout the divestment process, ensuring transparency, accountability, and compliance with all statutory requirements.
He observed that the move signals Kenya’s commitment to sound fiscal management, private sector partnerships, and the continued expansion of digital services that have transformed the lives of millions of citizens.
“This strategic divestment enables Kenya to invest in its future while safeguarding one of its greatest national assets. Safaricom will continue to be a pillar of innovation, financial inclusion, and social impact,” Mbadi said.
by Naif Rashid
