The government has taken a major step towards selling part of its stake in Safaricom PLC as it looks for new ways to raise money for development and reduce reliance on borrowing and higher taxes.
The National Treasury has confirmed that it is in the process of selling a 15 per cent stake in Safaricom to the Vodacom Group. The move is expected to raise more than Ksh200 billion and would significantly change the ownership structure of Kenya’s most profitable company.
Appearing before a joint committee of the National Assembly on Tuesday, January 13, 2026, Treasury Cabinet Secretary John Mbadi said the share sale is projected to raise about Ksh204.3 billion. He added that the total amount could rise to Ksh 244.5 billion after including proceeds from an upfront dividend monetisation arrangement.
According to the Treasury, the transaction involves the sale of 6,009,814,200 Safaricom shares, which represent 15 per cent of the company. The shares are priced at Ksh34 each, a figure that Treasury says is a 23.6 per cent premium compared to the six-month volume weighted average price as at December 2025.
”Under the proposal, the Government plans to sell 6,009,814,200 shares, representing 15 per cent of Safaricom, for Ksh 34 per share. The price represents a 23.6 per cent premium over the six-month volume weighted average price as at December 2025. Upon completion of the transaction, they will retain a 20 per cent shareholding, while Vodacom Group’s stake will rise to 55 per cent, consolidating ownership from both the Government and Vodafone,” the National Treasury statement said in part.
Once completed, the sale would reduce the State’s shareholding in Safaricom from 35 per cent to 20 per cent. At the same time, Vodacom Group’s stake would increase to 55 per cent, giving it majority control of the telecommunications firm. The remaining shares would continue to be held by public investors through the Nairobi Securities Exchange.
Long-term investment
Mbadi, who appeared alongside Treasury Principal Secretary Chris Kiptoo, told lawmakers that the money raised would be used as seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund. He said the aim is to support long-term investment in critical sectors while easing pressure on the country’s strained public finances.
He noted that Kenya is facing shrinking fiscal space, rising debt obligations and limited room to raise taxes, making it necessary to explore alternative sources of financing. According to the Treasury, proceeds from the Safaricom sale will be directed to priority areas such as energy, roads, water projects, airports and digital infrastructure.
The Cabinet Secretary said the move reflects a shift in policy, with the government gradually stepping back from commercial activities and allowing the private sector to take a larger role in running businesses.
To address public concerns, Mbadi said several safeguards have been included in the proposed deal. These include the government retaining two seats on Safaricom’s board, guarantees on employment stability for a specified period, provisions on board leadership, and continued support for the Safaricom Foundation, which funds social and community programmes across the country.
On the legal process, the Treasury said the transaction is being carried out under the Privatisation Act, 2025 and Section 87A of the Public Finance Management Act, which requires the proposal to be presented to Parliament for consideration within 28 sitting days.
”The CS said the transaction is being undertaken in accordance with the Privatisation Act, 2025 and Section 87A of the Public Finance Management Act, which requires parliamentary consideration within 28 sitting days. He noted that the proposal remains subject to approvals by the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya.”
Mbadi added that approvals will also be required from the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya before the deal can be finalised.
He further said the size of the transaction demonstrates confidence in Kenya’s capital markets and the ability of the Nairobi Securities Exchange to handle large and complex deals.
If approved, the sale would rank among the largest single equity transactions in Kenya’s history and mark a major shift in the ownership and control of Safaricom, a company that plays a central role in the country’s economy through mobile communication, mobile money and digital services.
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