Appearing before a joint committee of the National Assembly on Tuesday, Treasury Cabinet Secretary John Mbadi said the proposed transaction is expected to raise approximately Ksh204.3 billion from the share sale, with total proceeds projected at about Ksh244.5 billion after factoring in an upfront dividend monetisation component.
The planned divestiture would see the Government reduce its shareholding in Safaricom from 35 per cent to 20 per cent, while Vodacom Group’s stake would increase to 55 per cent, strengthening its position as the majority shareholder if the deal is approved.
According to Treasury documents, the Government intends to sell 6,009,814,200 Safaricom shares at a price of Ksh34 per share.
The price represents a 23.6 per cent premium over the six-month volume-weighted average share price as at December 2025, a valuation Treasury officials say reflects strong investor confidence in the firm.
“The objective is to unlock value from mature State assets in a structured manner to fund priority development projects, while reducing reliance on debt and distortionary taxation,” Mbadi told lawmakers during the session, which he attended alongside Principal Secretary Chris Kiptoo.
Treasury said the funds raised would be used as seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund, which are expected to support long-term investments in critical sectors of the economy.
According to the Cabinet Secretary, priority areas for funding include energy, road networks, water projects, airports and digital infrastructure, all of which require substantial capital outlays at a time when fiscal space is increasingly constrained.
Mbadi noted that the sale reflects a broader shift by the Government towards alternative financing models, amid rising debt servicing costs and tightening global financial conditions that have limited access to affordable external borrowing.
To address concerns around national interest and strategic control, the Treasury said several safeguards have been built into the transaction.
“The objective is to unlock value from mature State assets in a structured manner to fund priority development projects, while reducing reliance on debt and distortionary taxation,” Mbadi told lawmakers during the session, which he attended alongside Principal Secretary Chris Kiptoo.
Treasury said the funds raised would be used as seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund, which are expected to support long-term investments in critical sectors of the economy.
According to the Cabinet Secretary, priority areas for funding include energy, road networks, water projects, airports and digital infrastructure, all of which require substantial capital outlays at a time when fiscal space is increasingly constrained.
Mbadi noted that the sale reflects a broader shift by the Government towards alternative financing models, amid rising debt servicing costs and tightening global financial conditions that have limited access to affordable external borrowing.
To address concerns around national interest and strategic control, the Treasury said several safeguards have been built into the transaction.
These include the Government retaining two seats on Safaricom’s board, commitments on employment stability for a defined period, provisions governing board leadership, and continued support for the Safaricom Foundation’s social programmes.
The Cabinet Secretary emphasised that Safaricom would remain a Kenyan-listed company subject to local laws and regulatory oversight, even as Vodacom increases its shareholding.
On the legal framework, Treasury said the transaction is being undertaken in line with the Privatisation Act, 2025 and Section 87A of the Public Finance Management Act.
The Cabinet Secretary emphasised that Safaricom would remain a Kenyan-listed company subject to local laws and regulatory oversight, even as Vodacom increases its shareholding.
On the legal framework, Treasury said the transaction is being undertaken in line with the Privatisation Act, 2025 and Section 87A of the Public Finance Management Act.
The law requires Parliament to consider and approve the proposal within 28 sitting days before it can proceed.
In addition to parliamentary approval, the sale will also require clearance from several regulators, including the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya.
Mbadi said the move aligns with ongoing reforms aimed at separating the Government’s role as a policymaker and regulator from commercial activity, which he said should increasingly be driven by the private sector.
He further pointed to the scale of the transaction as evidence of confidence in Kenya’s capital markets, noting that the Nairobi Securities Exchange has the depth and capacity to accommodate large equity deals of this magnitude.
If approved, the sale would rank among the largest single equity transactions in Kenya’s history and mark a significant shift in the ownership structure of the country’s most profitable company, with far-reaching implications for the telecommunications sector and public finance management.
In addition to parliamentary approval, the sale will also require clearance from several regulators, including the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya.
Mbadi said the move aligns with ongoing reforms aimed at separating the Government’s role as a policymaker and regulator from commercial activity, which he said should increasingly be driven by the private sector.
He further pointed to the scale of the transaction as evidence of confidence in Kenya’s capital markets, noting that the Nairobi Securities Exchange has the depth and capacity to accommodate large equity deals of this magnitude.
If approved, the sale would rank among the largest single equity transactions in Kenya’s history and mark a significant shift in the ownership structure of the country’s most profitable company, with far-reaching implications for the telecommunications sector and public finance management.
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