The Government of Kenya has formally announced plans to undertake a partial divestment of its shareholding in Safaricom PLC, a move Treasury says will unlock significant capital to support national development while maintaining the State’s strategic interests in the country’s largest telecommunications company.
The announcement was delivered through an official statement from the National Treasury, accompanied by remarks from Treasury Cabinet Secretary Hon. John Mbadi Ng’ongo, who affirmed that the planned divestiture will follow a transparent, fully regulated process.
According to Treasury projections, the transaction is expected to generate between KSh 240.5 billion and KSh 244.5 billion, funds that will be channelled into Kenya’s National Infrastructure Fund and Sovereign Wealth Fund to support long-term investments in energy, roads, water, airports, and other public development priorities.
Treasury emphasized that this is not a withdrawal from Safaricom. Instead, it represents an adjustment of the government’s shareholding to optimise national assets and diversify non-tax revenue streams.
CS Mbadi reiterated that the State will continue to maintain a significant, strategic stake in Safaricom, noting that the company’s operational direction, leadership, and day-to-day management will remain unaffected.
“Kenya is moving toward a development model that relies less on debt and less on increased taxation,” the CS said. “This divestment is a prudent, timely step toward a fiscally sustainable future.”
He added that the State’s continued shareholding would preserve national strategic interests in critical digital infrastructure.
Safeguards in Data Protection and National Security
In response to public concerns regarding data safety and cybersecurity, the Treasury assured Kenyans that the divestment will not compromise national digital infrastructure. Kenya’s legal and regulatory frameworks governing data protection,cybersecurity,spectrum, telecom infrastructure, and national payment systems remain firmly in place and will continue to apply to Safaricom regardless of shareholding changes.
Speaking at the same event, Safaricom CEO Peter Ndegwa welcomed the Government’s decision and reaffirmed the company’s commitment to delivering strong shareholder value and advancing Kenya’s digital transformation.
Vodacom Group CEO Shameel Joosub also endorsed the move, describing it as a positive step that strengthens Safaricom’s long-term investment prospects and regional growth ambitions.
Both leaders expressed confidence in Safaricom’s future trajectory and affirmed their support for Kenya’s broader digital economy goals.
CS Mbadi revealed that proceeds from the divestment will act as seed capital for national investment vehicles to finance large infrastructure projects without heavy dependence on borrowing. The move aligns with President William Ruto’s economic strategy to boost domestic investment capacity while moderating national debt pressures.
The Treasury said the funds will be deployed toward transformational projects designed to expand economic opportunities, enhance productivity, and strengthen Kenya’s competitiveness.
Process to Follow Full Transparency and Regulatory Oversight
The divestment will adhere to all statutory requirements, including approvals and reviews by:
Cabinet
Parliament
Capital Markets Authority
Central Bank of Kenya
Communications Authority
Competition Authority of Kenya
The transaction will also undergo public participation and full disclosure through the Nairobi Securities Exchange (NSE) once formal processes begin.
Treasury indicated that further details including final shareholding structure, timelines, and mode of sale will be communicated in subsequent regulatory filings.
If completed, the Safaricom divestment will represent one of the most significant capital market transactions in Kenya’s recent history. Analysts say it could deepen market liquidity, broaden investor participation, and strengthen confidence in the Government’s fiscal reform agenda.
Treasury maintains that the move balances two national priorities: generating sustainable public investment capital while preserving strategic oversight in Kenya’s leading technology and telecommunications provider.
