Kenya’s government is set to raise KES 244.5 billion (£1.2bn) through the partial sale of its Safaricom shareholding, marking one of the country’s largest strategic divestitures in recent years.
The purchase price of Kes 34/share represents a premium to the volume weighted average price at which the shares of Safaricom traded on the NSE days up to 2nd December 2025 of 18.4% to the past 90 trading days & 33.9% to the past 180 trading days
The move comes as part of a broader restructuring involving Vodacom, which is reshaping its ownership structure across the region while deepening its investment footprint in East Africa’s fast-growing telecoms and fintech sectors.
The planned transaction, outlined in a shareholder circular, signals a significant shift in the state’s approach to financing development.
According to the document, proceeds from the Safaricom divestiture will be channelled into critical infrastructure projects, including energy, water, roads and airports—without increasing national debt or introducing new taxes.
Officials say the sale offers a rare opportunity to unlock capital while maintaining long-term economic stability. “This is the first step in the government’s vision to allocate resources into critical infrastructure development priorities… to accelerate economic growth,” the circular states.
The transaction is also part of a wider internal restructuring by Vodacom, which is acquiring Vodafone Kenya in a move described as a “simplification” designed to give the company more flexibility.
The restructuring allows Vodacom to proceed with the government share acquisition in what it calls “the most efficient manner”.
Following the transaction, Safaricom Plc’s shareholding structure will shift to give Vodacom a majority stake of 55%, while public investors will hold 25% and the Government of Kenya will retain a 20% share. Despite the changes, the company will remain listed on the Nairobi Securities Exchange, ensuring continued public participation and market transparency.
Vodacom’s board expressed confidence in Safaricom’s long-term investment prospects, citing its market leadership in Kenya, its expansion into Ethiopia and its growing fintech ecosystem. Safaricom’s business, which spans mobile payments, digital lending and digital wallets is considered one of the most advanced fintech platforms in Africa.
The board said the acquisition would strengthen Vodacom’s position as a regional technology and financial services powerhouse. The deal is expected to enhance its exposure to high-growth sectors while extending its geographic scale across East Africa.
Safaricom remains the dominant mobile operator in Kenya and has increasingly become a central pillar of the region’s digital economy.
Vodacom argues that consolidating ownership will allow it to better integrate Safaricom’s technology, strategy and best practices into the wider Vodacom Group.
The company highlighted Safaricom’s leading role in mobile-money innovation, particularly with M-Pesa, which has grown into one of Africa’s most influential digital financial platforms.
Safaricom’s expansion into Ethiopia, a country of more than 120 million people was also noted as a major growth pillar.
According to Vodacom, the acquisition will bring synergy in mobile payments, lending and digital wallets, allowing the company to push a more harmonised financial-inclusion strategy across the continent.
Both Safaricom and Vodacom are expected to share technology and operational frameworks as part of the integration.
For the Kenyan government, the partial exit marks a bold push to raise capital without worsening the country’s debt position. Kenya’s public debt has grown steadily in recent years, and authorities have increasingly sought alternatives to commercial borrowing.
The government expects the deal to attract significant hard-currency inflows. The acquisition structure is designed to bring fresh international capital into the Kenyan economy as Vodacom expands its asset base in the country.
Officials say the transaction aligns with Kenya’s Vision 2030 economic plan, particularly its focus on digital infrastructure, private-sector investment and regional integration.
Safaricom remains one of the most valuable companies in East Africa and continues to exert strong influence on Nairobi Securities Exchange performance.
A deal of this scale is expected to draw attention from global institutional investors while potentially reshaping the company’s shareholder profile.
As Kenya navigates a challenging fiscal environment, the Safaricom divestiture may become a defining example of how governments in emerging markets can leverage state assets to fund national priorities without resorting to heavy borrowing.
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