Safaricom wins central bank approval for 15% stake sale

Safaricom, East Africa’s largest telecom operator led by Kenyan executive Peter Ndegwa, has received Central Bank of Kenya (CBK) approval to sell 15 percent of the government’s stake in the company. Officials describe the move as a practical measure to relieve rising public debt, making the $1.6 billion (Ksh206.4 billion) transaction a significant source of fiscal support.

Kenya trims Safaricom stake to 20 percent

The sale will reduce the state’s holding in Safaricom, Kenya’s most valuable company, from 35 percent to roughly 20 percent. South Africa’s Vodacom Group, Safaricom’s largest shareholder and strategic partner, is expected to increase its stake under the arrangement.

CBK Governor Kamau Thugge told Parliament this week that the sale is part of a broader effort to unlock alternative funding amid high borrowing costs. Kenya’s public debt reached Ksh12.05 trillion ($93.4 billion), or 68.9 percent of GDP, as of September 2025, up from Ksh11.81 trillion ($91.55 billion) three months earlier.

Deal structure and financial details

The plan in Sessional Paper No. 3 of 2025 could raise about $1.9 billion for the treasury, including through dividend monetization. Vodacom will buy 6.01 billion shares at $0.27 (KSh34) each, a 23.6 percent premium over the six-month average. Regulators, including the Capital Markets Authority, have defended the transaction’s valuation.

The government will also receive an upfront dividend-backed loan of approximately $311 million (Ksh40.2 billion) to boost short-term revenue. While CBK has approved the sale, some lawmakers have raised concerns that it reduces Kenya’s control over a critical digital asset. Ndegwa reassured a parliamentary committee on January 19 that Safaricom’s headquarters and operations will remain in Nairobi.

Maintaining Kenyan oversight and sustainability goals

Safaricom serves over 48 million customers across East Africa and contributes roughly 5 percent of Kenya’s GDP through telecom, mobile money, data and cloud services. The deal includes safeguards: the chairman and CEO must remain Kenyan, the government keeps a 20 percent stake and two board seats and CBK retains oversight of M-Pesa.

The sale also aligns with Safaricom’s sustainability efforts, including a $115.6 million tax-free green bond issued to fund approved environmental projects. Public consultation ended on January 8 and final regulatory approvals from the Competition Authority of Kenya and the COMESA Competition Commission are expected before mid-2026.