The National Treasury and Economic Planning has launched the process of selling a 15 per cent stake in Safaricom PLC to the Vodacom Group, a move aimed at raising resources for development financing. Speaking before a joint committee of the National Assembly, Cabinet Secretary for the National Treasury, Hon FCPA John Mbadi, said the partial divestiture is expected to generate approximately KES 204.3 billion, with total proceeds projected at KES 244.5 billion when an upfront dividend monetisation component is included.
Under the proposal, the government plans to sell 6,009,814,200 shares, representing 15 per cent of Safaricom, at a price of KES 34 per share. This price represents a 23.6 per cent premium over the six-month volume-weighted average as at December 2025. Upon completion, the government will retain 20 per cent ownership, while Vodacom Group's stake will rise to 55 per cent, consolidating ownership from both the government and Vodafone.
The proceeds are intended to provide seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund. Hon Mbadi explained that the approach reflects a shift toward alternative financing mechanisms at a time of tightening fiscal conditions, with private sector participation increasingly expected to meet the country's development needs. The funds will be directed to priority sectors including energy, roads, water, airports, and digital infrastructure, while easing reliance on borrowing and taxation.
