By Ng’wono Bw’Otwere
The Government of Kenya has announced a landmark decision to partially divest 15% of its shareholding in Safaricom PLC, marking a bold step toward mobilising non-tax revenue for national development.
Cabinet Secretary (CS) for the National Treasury, John Mbadi, unveiled the move during a high-level event, describing it as a well-studied, legally compliant transaction that balances fiscal responsibility with long-term strategic interests.
The divestment, backed by exhaustive analysis and independent valuation, is expected to raise approximately Ksh 244.5 billion.
These funds will serve as seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund, unlocking financing for roads, energy, water systems, airport upgrades, and other priority projects.
Mbadi emphasised that the government remains a strategic shareholder, committed to reinforcing fiscal sustainability while creating space for national priorities.
Investor confidence has surged, with the offering attracting a 23.6% premium above the six-month volume-weighted average price—a clear signal of trust in Safaricom’s value and Kenya’s reform trajectory.
But beyond numbers, the government has secured strong safeguards to protect Kenya’s identity and interests.
These include guarantees from Vodacom Kenya Limited to preserve jobs, maintain the Safaricom and M-Pesa Foundations, and ensure that both the Chairman and CEO remain Kenyan citizens.
The brand name, executive structure, and local supplier arrangements are also protected, with foundation funds committed exclusively to Kenyan investments.
Mbadi said this is not just a financial transaction—it’s a shift in how Kenya manages its future.
“This move reflects a responsible approach to fiscal management—mobilising resources without overtaxing citizens or overborrowing,” he said.
