28 May 2025
The Kenyan government intends to sell part of its stake in Safaricom, the country's leading telecom operator, aiming to raise approximately KES 149 billion by mid-2026. This privatization effort aims to fund the national budget without increasing taxes.
Treasury Cabinet Secretary John Mbadi highlighted Safaricom’s strength as a valuable public asset capable of generating significant revenue. Currently, the government owns a 34.9% stake, having sold 25% during the 2008 IPO, with other shareholders including Vodacom (34.9%), Vodafone (5%), and a 25% free float.
Potentially through a secondary offering or a strategic stake sale, analysts estimate that selling 5% to 10% of the stake could yield between US$308 million and US$617 million, based on the current share price of around KES 19.90.
Safaricom, listed on the Nairobi Stock Exchange, is known for its stable revenue and cash flow, posting a 3.5% operating profit growth in 2024/2025 to KES 94.9 billion, driven largely by its Kenyan operations.
This move reflects the government’s broader strategy to attract international investment and boost confidence in Kenya’s economy, especially amid challenges posed by less profitable state-owned enterprises.
