The Government of Kenya is set to sell 15% Safaricom Stake for Ksh240.5 billion to fund infrastructure developments.

National Treasurer Cabinet Secretary John Mbadi confirmed that the move aims at getting funds to improve the National Infrastructure.

“The sale of a 15 per cent stake, which represents 6,009,814,200 ordinary shares at Ksh34 per share, gives us a premium of 26.5 percent. The Kenyan government still holds a significant 20 per cent to influence decision-making,’’ Mbadi said.

President William Ruto’s government eyes to benefit more from the deal.

Foreign Direct Investment

When Vodacom secures the stake at a significant premium to the market price, the transactional inflow of foreign, hard currency into the Kenyan economy, strengthening the macro-economic outlook, will be beneficial to the government.

Additionally, the willingness of Vodacom to pay a premium and increase its stake to 55% acts as a long-term endorsement of Safaricom’s growth prospects and the stability of the Kenyan market.

Also Read: CS Mbadi Clarifies on Government Selling Safaricom Shares

Sovereign Wealth & Infrastructure

The money generated from the sale will not only be used for current expenditure but also as a starting capital for the National Infrastructure Fund and the Sovereign Wealth Fund.

Therefore, resources will be allocated to valuable sectors, including Energy, Roads, Water, and Airports, to accelerate economic growth.

This plan ensures that the selling of current assets provides long-lasting national assets and builds strong financial foundations.

Also Read: Safaricom Confirms Vodafone’s Plans to Acquire Government Stake

Regional Expansion & The Vision 2030 Partnership

This deal makes Safaricom broader in the Vodacom Group, supporting the “Vision 2030” plan and expanding its operations in Ethiopia.

A stronger Safaricom network can uses global fintech and mobile payment expertise will help Kenya’s technology sector and strengthen its position as a regional tech hub.

The agreement helps in strengthening Safaricom’s strategy to expand its digital ecosystem, enabling the company to deliver broader financial solutions and innovative services across the region.

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National Treasurer Cabinet Secretary John Mbadi and top Vodacom Group officials at past event. PHOTO/PD