The National Treasury has announced a plan to partially sell the Government’s stake in Safaricom Plc. This is an important step in raising money for national development without relying on taxes. The sale is expected to bring in around KES 240.5 billion and will follow the rules set by the Public Finance Management Act (PFMA) and other laws concerning State investments.
As required by law, the proposed sale will need to get a series of approvals. The Treasury will first send the proposal to the Cabinet for consideration. After that, it will be sent to Parliament for review, following PFMA rules and the constitutional guidelines for selling government assets.
The transaction must also be approved by key regulators, including the Capital Markets Authority, Central Bank of Kenya, Communications Authority of Kenya, and the Competition Authority of Kenya. These organizations will evaluate the proposal based on their responsibilities for overseeing capital markets, ensuring financial stability, managing telecommunications infrastructure, and enforcing competition policy.
Treasury Cabinet Secretary FCPA John Mbadi said this move fits with the Government’s goal of improving fiscal sustainability.
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“This proposed partial sale is based on the need to generate non-tax revenue responsibly and with an eye to the future. This will reduce the burden on taxpayers and limit the reliance on debt. The funds will help launch the National Infrastructure Fund and the Sovereign Wealth Fund.”
He added that this decision supports President William Ruto’s vision of a nation that is less reliant on debt and tax increases for funding development.
Vodacom Group, a major investor, welcomed the proposal. CEO Shameel Joosub reaffirmed Vodacom’s long-term commitment to Safaricom and highlighted the company’s strong fundamentals and strategic importance in the region.
Safaricom CEO Peter Ndegwa thanked the Government for its ongoing trust in the company, stressing its role in advancing Kenya’s digital transformation.
More information will be shared after the Cabinet, Parliamentary, and regulatory processes are finished.
