The National Treasury CS, John Mbadi./FILEThe government is set to sell a 15 percent stake in Safaricom worth Sh240.5 billion.
The National Treasury CS, John Mbadi, says the funds will be used as seed capital for the National Infrastructure Fund.
The sale, which is subject to regulatory approvals by state regulators, the public, and the Parliament, will see the government custodian, the National Treasury, lose key decision-making to Vodacom, which will effectively control a majority 55 per cent stake in Safaricom Plc.
CS Mbadi, who announced it on Thursday, however, insists that the state still has the capacity to influence decisions at the telco by virtue of its 20 per cent shareholding.
“The sale of a 15 per cent stake, which represents 6,009,814,200 ordinary shares at Sh34 per share, gives us a premium of 26.5 percent. The Kenyan government still holds a significant 20 per cent to influence decision-making,’’ Mbadi said.
He added that all national safeguards, including data protection, cybersecurity, critical digital infrastructure, spectrum allocation, and the integrity of national payment systems, remain firmly safeguarded under the Kenyan regulatory environment.
Mbadi said that the proceeds will form part of the seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund, helping the government build the long-term financial foundations.
“This aligns with the vision articulated by President William Ruto: a Kenya that is less dependent on debt and less reliant on increasing taxes to fund development. It is a good and timely move for our nation,’’ Mbadi said.
Kenya is targeting Sh600 billion to fund various infrastructure funds, including roads, dams, and energy infrastructure, among others, as a way of easing dependency on debt.
The government share acquisition is inter-conditional with an internal reorganisation where Vodacom will acquire Vodafone International Holdings B.V.'s 12.5 per cent stake in Vodafone Kenya, resulting in Vodacom taking over Vodafone Kenya.
Vodafone Kenya will also be making an upfront payment to the GOK instead of future dividends on the GOK's residual 20 per cent shareholding valued at Sh40 billion.
This will see the government gain a total of Sh240.5 billion from the transaction.
