Kenya’s latest decision to restructure its shareholding in Safaricom marks one of the most significant shifts in the country’s approach to public finance. In a move widely seen as a pivot toward smarter, non-tax and non-debt revenue strategies, the Government has confirmed the sale of part of its stake to Vodafone Kenya, generating a substantial cash inflow without increasing the tax burden or relying on borrowing.
Vodafone Kenya Acquires 15% Stake for KES 204.3 Billion
Under the transaction:
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Vodafone Kenya will acquire 6.01 billion government shares, equivalent to 15% of Safaricom, for KES 204.3B.
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The purchase price of KES 34.00 per share represents a 21% premium over Safaricom’s last closing price.
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Following an internal reorganisation, Vodacom Group will own 100% of Vodafone Kenya, giving it an additional 4.99% indirect stake in Safaricom.
This restructuring consolidates Vodafone/Vodacom’s position, strengthens governance alignment within the group, and ensures Safaricom remains strategically anchored to a global telecoms ecosystem.
Government Retains 20% Strategic Stake, Unlocks KES 40.2B Upfront
Despite selling 15%, the Government has confirmed it will retain a 20% strategic shareholding in Safaricom — safeguarding national interests in spectrum, payments infrastructure, cybersecurity, and critical digital assets.
Importantly, the State receives KES 40.2B upfront, revenue that would have otherwise taken years to accumulate through dividends.
In total, the Government realises KES 244.5B in cash from the restructuring.
Funds to Strengthen Sovereign Wealth and Infrastructure Funds
One of the most consequential aspects of this transaction is where the proceeds are expected to go.
Treasury has indicated that the inflows will be channelled into:
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The Sovereign Wealth Fund (SWF)
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The National Infrastructure Fund (NIF)
These long-term capital vehicles are designed to reduce Kenya’s dependence on external debt, stabilise the economy, and support development of energy, transport, water, and digital infrastructure.
If managed effectively, the move could mark the beginning of a more sustainable fiscal era — one less reliant on expensive borrowing.
Market Responds Positively as Safaricom Surges 96% YTD
Safaricom’s share price has risen 96% year-to-date, a surge analysts attribute to renewed investor confidence, improved clarity in governance, and optimism around the restructuring process.
The transaction also reinforces Safaricom’s strength as one of the region’s most valuable companies and a key pillar of Kenya’s capital markets.
A Turning Point for State Asset Reform
The outcome of the restructuring is a reminder that well-designed asset reforms can unlock meaningful value without burdening citizens or increasing public debt.
For young Kenyans who have long pushed for innovative public finance models, this shift is particularly significant — signalling that government may finally be embracing more sustainable revenue options.
While execution and oversight will determine the long-term success of the strategy, the Safaricom divestment marks a promising step toward a more resilient economic future.
