The Government of Kenya has formally announced plans to undertake a partial divestment of its shareholding in Safaricom PLC, a move the National Treasury says will unlock substantial capital to support national development while preserving the State’s strategic interests in the country’s largest telecommunications company.
The decision was communicated in an official statement from the National Treasury, accompanied by remarks from Treasury Cabinet Secretary Hon. John Mbadi Ng’ongo, who emphasized that the planned divestiture will be executed through a transparent and fully regulated process.
According to Treasury projections, the transaction expected to involve the offloading of a 15.0% stake to Vodafone Kenya Ltd in a deal valued at approximately KSh 204.3 billion (US$1.6 billion) is projected to generate between KSh 240.5 billion and KSh 244.5 billion. These funds will be channelled into the National Infrastructure Fund and the Sovereign Wealth Fund to support long-term investments in energy, roads, water, airports, and other priority development projects.
Treasury officials stressed that the move does not signal a withdrawal from Safaricom. Instead, it represents a strategic adjustment of the government’s shareholding aimed at optimising national assets and expanding non-tax revenue sources.
CS Mbadi reiterated that the State will maintain a significant strategic stake in the company and that Safaricom’s leadership, operational direction, and day-to-day management will remain unchanged.
“Kenya is moving toward a development model that relies less on debt and less on increased taxation,” the CS said. “This divestment is a prudent, timely step toward a fiscally sustainable future.”
He added that the State’s continued shareholding ensures that national interests tied to critical digital infrastructure remain protected.
