- The government plans to sell part of its Safaricom shares to Vodacom
- The sale targets about Sh244.5 billion in total proceeds
- Funds will support infrastructure and national development projects
- The government will keep board representation at Safaricom
The National Treasury has unveiled plans to reduce the government’s ownership in Safaricom PLC through a structured share sale to the Vodacom Group.
The proposal involves offloading a 15 per cent stake as part of efforts to raise funds for priority national projects.
Appearing before a joint committee of the National Assembly, Treasury Cabinet Secretary John Mbadi said the transaction is expected to raise about Sh204.3 billion from the share sale alone.
When combined with an advance dividend arrangement, the total amount is projected to reach roughly Sh244.5 billion.
Under the plan, the government will sell slightly over six billion Safaricom shares at Sh34 per share. This price is higher than the recent market average, offering a premium based on Safaricom’s past trading performance.
Once the deal is completed, the State’s ownership in Safaricom will drop to 20 per cent, while Vodacom’s stake will increase to 55 per cent.
CS Mbadi said the move reflects a change in how the government plans to fund development, especially as public finances remain under pressure.
He noted that private investment is now being used more actively to support growth, instead of relying mainly on loans or higher taxes.
According to the Treasury, the funds raised will be directed to critical sectors such as roads, energy, water, airports, and digital systems.
These areas are seen as key to boosting economic growth and improving service delivery across the country.
Despite reducing its shareholding, the government will keep two seats on Safaricom’s board to protect public interests.
The agreement also includes conditions on job security, leadership structure, and continued backing of the Safaricom Foundation’s social projects.
Mbadi added that part of the money will be used as starting capital for the planned National Infrastructure Fund and the Sovereign Wealth Fund.
The government believes these funds will play a major role in supporting long-term development without increasing the debt burden.
