At least Sh3 billion will be spent on transaction advisors and lawyers in the planned sale of the government’s 15 per cent stake in Safaricom, a move aimed at raising funds for national infrastructure and development projects.
The National Treasury announced plans to offload 6,009,814,200 shares, representing 15 per cent of the telecom firm, at Sh34 per share, a 23.6 per cent premium over the six-month volume-weighted average price as of December 2025.
The sale is expected to generate Sh204.3 billion from the shares, with total proceeds projected at Sh244.5 billion after factoring in an upfront dividend monetisation component.
Appearing before a joint committee of the National Assembly on Tuesday, National Treasury Cabinet Secretary John Mbadi said the divestiture will leave the government with a 20 per cent stake while Vodacom Group’s ownership will rise to 55 per cent, consolidating stakes previously held by the government and Vodafone.
Mbadi, accompanied by Principal Secretary Chris Kiptoo, said the funds will provide seed capital for the proposed National Infrastructure Fund (NIF) and the Sovereign Wealth Fund.
“The funds will be directed to priority sectors including energy, roads, water, airports and digital infrastructure, while reducing reliance on borrowing and taxation,” he said.
Mbadi added that the government will also retain two seats on Safaricom’s board, and the transaction includes commitments on employment stability, board leadership and continued support for the Safaricom Foundation.
“The divestment aligns with broader reforms clarifying the government’s role in policy and regulation while allowing the private sector to lead in commercial activity. The scale of this transaction also reflects confidence in Kenya’s capital markets and the Nairobi Securities Exchange’s ability to accommodate large deals,” Mbadi said.
However, several MPs raised concerns over the decision to appoint Vodafone as the sole buyer, questioning why a competitive bidding process was not considered.
“It looks like you have already made up your mind to sell to Vodafone for the reasons you have told us, but don’t you think it is unfair to others who would have wanted an opportunity to also have these shares?” Chesumei MP Paul Biego posed.
Kitui Rural MP David Mboni added, “The sale of this 15 per cent will change the whole ownership structure. Vodafone will have 55 per cent, and the protection is only for three years, so what happens after three years?”
In response, Mbadi explained that the government chose an established partner in Vodacom to avoid potential business disruption that could arise if the shares were sold to a different buyer.
According to the CS, selling Safaricom shares directly to Kenyan retail investors would also not have provided value for money, as it would have required offering them at a discount.
“Selling Safaricom shares directly to Kenyans would not have given us value for money because we would have sold at a discount. If we released additional shares into the market and asked Kenyans to bid, they would simply follow the prevailing market price. Once you increase supply, you distort the price, and the law of supply and demand takes effect. That is Economics 101,” he said.
“The more reason why we went for this established partner who is in this space is to safeguard against business disruption. If we went for someone else, there would be a possibility of such disruption.”
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