Signing of partial divestment of 15 percent of Government shareholding in Safaricom PLC
The Government has today announced a carefully considered partial divestment of 15 percent of its shareholding in Safaricom PLC,an exercise designed to mobilize non tax revenue for national development while preserving Kenya’s strategic interests in its largest and most influential telecommunications company.
Speaking today in an event attended by the Hon. Attorney General Dorcas Oduor, National Treasury PS Dr. Chris Kiptoo, PS for Telecommunications and Broadcasting Mr. Stephen Isaboke, Vodacom Group CEO Mr. Shameel Joosub, Safaricom Board Chairman Mr. Adil Khawaja, and Safaricom CEO Dr. Peter Njoroge and the DG PIPM Mr.Lawrence Kibet, the Cabinet Secretary for the National Treasury, Hon. FCPA John Mbadi Ng’ongo, underscored that the Government will retain a significant, strategic shareholding in Safaricom.
The CS affirmed that the decision followed rigorous analysis, independent valuation, and full compliance with the Public Finance Management Act and all applicable regulatory frameworks.
“This is a partial divestment, and the Government remains a strategic shareholder,” the CS said. “Our intention is to mobilize resources responsibly, reinforce fiscal sustainability, and create fiscal headroom for long-term national priorities.”
Safaricom, he noted, stands among Kenya’s most transformative enterprises,expanding digital connectivity, mobile financial services, and innovation across the economy.
The divestment is expected to enhance the company’s capacity to invest in next generation infrastructure, including 5G, fibre, fintech innovations, and regional expansion, thereby strengthening service delivery and stimulating economic growth.
The transaction is projected to generate gross proceeds of about KES 244.5 billion, which will serve as seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund. These instruments will channel long term financing into critical sectors such as roads, energy, water, and airports.
The CS urged the National Assembly to expedite approval of the enabling legal instruments.
The offering has already demonstrated strong investor interest, achieving a 23.6 percent premium above the six month volume weighted average price,an emphatic signal of market confidence.
To secure Kenya’s national and strategic interests,hon Mbadi said, the Government negotiated extensive undertakings from Vodacom Kenya Limited (VKL) in its capacity as a shareholder of Safaricom PLC. These commitments preserve continuity, protect Kenyan jobs, and maintain the company’s identity as a Kenyan-rooted institution.
The undertakings include:
• No employee redundancies, except in the ordinary course of business
• Preservation and full support for both the Safaricom Foundation and M-Pesa Foundation
• Prior consultation with the Government before any new geographic expansion outside Kenya (excluding existing foreign operations)
• The Chairman and CEO of Safaricom shall always be Kenyan citizens
• No changes to the Executive Committee as at the Signature Date without the CEO’s consent
• No alteration to the Safaricom corporate brand name, trademarks, logos, or associated identity
• No significant changes to local supplier arrangements for at least three years, outside the ordinary course of business
• All trustees of the Safaricom Foundation and M-Pesa Foundation current or future shall be Kenyan citizens
• All foundation funds shall be expended exclusively on projects within Kenya
• No action regarding these undertakings may be taken without the prior written consent of the Government of Kenya.
These safeguards ensure that Safaricom retains its Kenyan leadership , Kenyan character, and unwavering commitment to local suppliers, communities, and development initiatives.
The CS emphasized that this divestiture is aligned with the national goal of reducing reliance on public debt and avoiding excessive taxation.
“We are taking a decisive step toward a development model that leverages institutional capital, strengthens our capital markets, and unlocks long-term value for Kenyans,” he stated.
He expressed appreciation to Vodacom for its strong partnership and reaffirmed the Government’s commitment to advancing Kenya’s digital transformation, deepening investment, and safeguarding the country’s economic sustainability .