Mbadi: Cash raised from Safaricom shares sale to fund infrastructure

Treasury CS John Mbadi and Vodacom Group CEO Shameel Joosub after signing a long-term partnership to sale 15 per cent stake in Safaricom shares to Vodacom in Nairobi, on December 4, 2025. [Edward Kiplimo, Standard]

The government’s planned sale of a 15 per cent stake of its shareholding in Safaricom to Vodafone Kenya for Sh244.5 billion will help to raise money for critical infrastructure projects.

The proceeds of this transaction are expected to be invested in projects around energy, roads, water and airports, which are the key infrastructure outlined in President William Ruto’s plan of turning Kenya into a first-world economy.

This plan requires Sh5 trillion, which he said will be raised without burdening Kenyans with more debts.

The sale of the government’s stake, as announced on Thursday, will see Vodafone Kenya buy six billion ordinary shares at the price of Sh34 per share. This brings the transaction cost to Sh204.3 billion. CS Mbadi said this is a partial divestment, and the government will continue to retain a significant stake in the telco. “It reflects a broader national objective: mobilising non-tax revenue responsibly to support sustainable public finances while preserving the national interest,” said the CS.

Mbadi said the government intends to strengthen Safaricom’s ability to invest in the next wave of digital infrastructure and services, from 5G and fibre to fintech and regional expansion. 

“Once (the transaction) is complete, the funds from this transaction will be the seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund,” said Mbadi.

Mbadi called on Parliament to expedite the approval of the instruments required to establish the two funds, ensuring they are operational by the time the transfer occurs.

“This partial 15 per cent divestiture will generate approximately Sh244.5 billion in aggregate proceeds. It is important to note that this transaction has gained us a 23.6 per cent premium on the six-month volume weighted average price,” he said. 

The transaction has also informed an internal reorganisation where Vodacom Group will acquire Vodafone International Holdings B.V.’s 12.5 per cent stake in Vodafone Kenya. As such, Vodacom will own 100 per cent of Vodafone Kenya. Vodacom Group Chief Executive Shameel Joosub said the firm remains fully committed to Safaricom’s long-term growth and success.

 “Safaricom’s operations, leadership, and strategic direction remain strong, and we continue to focus on delivering innovative products and services that uplift our customers and support Kenya’s digital ambition,” said Safaricom Chief Executive Peter Ndegwa.