Kenya initiates sale of Safaricom stake to Vodacom

by MARIA MACHARIA NAIROBI – KENYA’S National Treasury has initiated the process of selling the 15-percent stake in Safaricom to the Vodacom Group. Officials from the Treasury have engaged National Assembly committees, namely the Departmental Committee on Finance and National Planning as well as the Committee on Public Debt and Privatisation, in a stakeholder session on the 2025 Sessional Paper on divestiture. John Mbadi, Cabinet Secretary for the National Treasury, and Chris Kiptoo, the Principal Secretary, appeared before the joint committee on Tuesday. Bandi told legislators the proceeds were intended to provide seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund. “The approach reflects a shift toward alternative financing mechanisms at a time of tightening fiscal conditions,” he said. Mbadi also told the joint told the committee that safeguards had been incorporated to protect public interest following the transaction. These include the state retaining two board seats at Safaricom, commitments on employment stability for a defined period, requirements on board leadership and continued support for the Safaricom Foundation. Mbadi added the transaction was being undertaken in accordance with the Privatisation Act the Public Finance Management Act, which requires parliamentary consideration within 28 sitting days. “The (parliamentary) session provided an opportunity to outline and discuss the policy and economic framework underpinning the proposed transaction,” Kiptoo said after the session. Under the proposal, the government plans to sell the stake in Safaricom to Vodacom, reducing the government’s holding to 20 percent. This is expected to generate approximately Sh204,3 billion (about (US$1,6 billion). Revenues are projected at Sh244,5 billion ($1,89 billion) when an upfront dividend monetisation component is included. “The transaction with Vodacom Group, a long-standing strategic partner, safeguards national interests, preserves Kenyan leadership, protects jobs and strengthens Safaricom’s competitiveness and innovation leadership,” Kiptoo said. – CAJ News