Kenya and Ethiopia Pledge Support for Safaricom and Ethiotel Strategic Investments

Kenya and Ethiopia have reaffirmed their commitment to supporting strategic joint investments between Kenya’s Safaricom and Ethiopia’s state-owned Ethiotel, following bilateral talks between President William Ruto and Ethiopian Prime Minister Abiy Ahmed Ali.

President Ruto made a one-day working visit to Addis Ababa on Tuesday, December 23, 2025, where he held discussions with Prime Minister Abiy. 

The talks focused on strengthening economic cooperation, enhancing digital infrastructure, and promoting regional stability in the Horn of Africa.

In a post on X, President Ruto highlighted that the two governments had agreed to fully back strategic joint investment opportunities between Safaricom and Ethiotel across regional markets. 

“We agreed to support Ethiotel and Safaricom as they explore strategic joint investment opportunities with full backing from our governments,” he said.

Prime Minister Abiy echoed the sentiment, describing the meeting as a reflection of the “deep, historic, and brotherly relations” between Kenya and Ethiopia. 

He added that the discussions focused on regional peace and security, and the leaders reaffirmed their shared commitment to stability, dialogue, and African-led solutions.

The announcement comes as Safaricom continues to expand in Ethiopia, where it launched services in 2022 after obtaining a license in 2021. The company has invested heavily in network expansion to improve digital inclusion in one of Africa’s largest and fastest-growing markets. 

The joint initiatives are expected to enhance infrastructure development, improve digital services, and boost economic integration in the region.

“This collaboration represents a new phase for both companies,” noted an industry analyst.

“By combining resources and expertise, Safaricom and Ethiotel can expand their market reach, drive digital growth, and create opportunities for innovation in the telecommunications sector.”

The leaders also emphasized that economic partnerships would be complemented by efforts to maintain regional peace and security. 

Both President Ruto and Prime Minister Abiy stressed that stability is a prerequisite for sustainable economic growth and digital development.

The bilateral meeting also comes amid developments in Kenya’s telecommunications sector. Recently, the Kenyan government divested part of its shares in Safaricom to Vodacom, a move aimed at raising funds for infrastructure projects. 

Treasury Cabinet Secretary John Mbadi defended the divestiture and urged critics to address any concerns through parliamentary oversight rather than public debate.

“If there are questions about the divestiture, they should be raised before the Finance and Planning Committee or the Debt and Privatisation Committee. We are ready to provide all necessary clarifications,” Mbadi said, responding to criticism from Kiharu MP Ndindi Nyoro.

Analysts say the partnership between Safaricom and Ethiotel could accelerate digital transformation in the region. 

Enhanced telecommunications infrastructure is expected to improve connectivity, support mobile banking and fintech services, and expand access to online education and health services.

The collaboration also signals deeper economic integration between Kenya and Ethiopia. By leveraging their respective strengths, both countries aim to create a regional hub for innovation, investment, and digital entrepreneurship.

“This is a significant milestone for regional cooperation in East Africa,” said a telecom sector expert. 

“It shows how governments and private sector players can work together to drive development, promote cross-border trade, and improve the lives of citizens.”

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