The Government of Kenya has revealed plans to partially divest its shares in Safaricom Plc, a decision aimed at raising vital funds for national infrastructure development and economic growth.
Treasury Cabinet Secretary, (CS) John Mbadi, emphasized that the move will help mobilize non-tax revenue to fund crucial infrastructure projects while preserving the government’s strategic interests.
“This is a partial divestment. The Government will continue to maintain a significant stake in Safaricom, and our strategic interests remain fully protected,” Mbadi clarified. He added that the transaction is expected to raise approximately Sh240.5 billion, with proceeds allocated to the National Infrastructure Fund and the Sovereign Wealth Fund, financing sectors like energy, transport, water, and digital infrastructure.
The divestment will see the sale of 15 percent of the government’s stake in Safaricom, which Mbadi highlighted was sold at a premium of 23.6 percent above the six-month volume-weighted average price, ensuring the transaction is beneficial for the country. He reassured that the move would not affect Safaricom’s operations, governance, or strategic direction, with the company’s management remaining intact.
Safaricom’s Chairman, Adil Arshed Khawaja, assured stakeholders that the company’s governance structure, management, and business operations would remain unchanged. He emphasized that Safaricom’s continued focus on digital services and financial inclusion remains strong, noting the company’s position as a leading telecom and digital services provider in East Africa.
Vodacom Group CEO, Shameel Joosub, expressed pride in expanding its investment in Safaricom, highlighting the partnership’s role in driving Kenya’s digital economy and fostering social impact through the Safaricom and M-Pesa Foundations. The move aligns with global trends, signaling Kenya’s commitment to fostering private sector partnerships and expanding digital services across the region.
CS Mbadi reaffirmed that the government would engage with Parliament, regulators, and the public throughout the divestment process, ensuring transparency and compliance with all statutory requirements. He concluded, “This strategic divestment enables Kenya to invest in its future while safeguarding one of its greatest national assets.”