The National Treasury has begun the process of selling a 15 per cent stake in Safaricom PLC to the Vodacom Group in a transaction aimed at raising funds for development financing and reducing pressure on public borrowing and taxation.

Appearing before a joint committee of the National Assembly on Tuesday, January 13, 2026, Cabinet Secretary for the National Treasury John Mbadi said the proposed partial divestiture is expected to generate about Ksh204.3 billion from the share sale, with total proceeds projected at Ksh244.5 billion after factoring in an upfront dividend monetisation component.

Shareholding reduction

According to the statement issued by the National Treasury, the transaction will see the State’s shareholding in Safaricom reduce to 20 per cent, while Vodacom Group’s stake will rise to 55 per cent, consolidating ownership previously split between the Government and Vodafone if completed.

”Under the proposal, the Government plans to sell 6,009,814,200 shares, representing 15 per cent of Safaricom, for Ksh34 per share. The price represents a 23.6 per cent premium over the six-month volume weighted average price as at December 2025. Upon completion of the transaction, they will retain a 20 per cent shareholding, while Vodacom Group’s stake will rise to 55 per cent, consolidating ownership from both the Government and Vodafone,” the National Treasury statement said in part.

Mbadi, who appeared alongside Principal Secretary Chris Kiptoo, told lawmakers that the funds raised would provide seed capital for the proposed National Infrastructure Fund and the Sovereign Wealth Fund.

He said the move signals a shift towards alternative financing models at a time when fiscal space is shrinking and traditional sources of funding are becoming increasingly constrained.

According to the Treasury, the proceeds will be channelled to priority sectors including energy, roads, water, airports and digital infrastructure, while helping ease the country’s dependence on debt and higher taxes.

To address public interest concerns, the Cabinet Secretary said a number of safeguards had been built into the transaction.

These include the Government retaining two seats on Safaricom’s board, commitments on employment stability for a defined period, provisions on board leadership, and continued support for the Safaricom Foundation.

Legal pathway

On the legal framework, the statement said: ”The CS said the transaction is being undertaken in accordance with the Privatisation Act, 2025 and Section 87A of the Public Finance Management Act, which requires parliamentary consideration within 28 sitting days. He noted that the proposal remains subject to approvals by the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya.”

John Mbadi added that the proposal will also require approvals from the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya before it can be finalised.

The Treasury boss said the sale fits into broader reforms aimed at clearly separating the Government’s role as a policymaker and regulator from commercial activity, which he said should increasingly be led by the private sector.

He further noted that the scale of the deal reflects confidence in Kenya’s capital markets, citing the capacity of the Nairobi Securities Exchange to accommodate large transactions of this magnitude.

If approved, the sale would mark one of the largest single equity transactions in Kenya’s history and a significant shift in the ownership structure of the country’s most profitable company.