CS Mbadi Addresses Possibility of Govt Splitting Safaricom 15% Divestiture

Treasury Cabinet Secretary John Mbadi has addressed suggestions to split the government’s 15% divestiture of Safaricom shares.

While speaking in a media interview on Thursday, January 22, 2026, the Treasury CS explained why the current government strategy prioritises market stability and maximises returns.

CS Mbadi noted that various stakeholders, including the Law Society of Kenya (LSK), the Kenya Bankers Association, the Kenya Association of Stockbrokers, and others, had proposed different approaches.

CS Mbadi Rules Out Splitting Safaricom 15% Divestiture

Some suggested floating part of the shares on the Nairobi Securities Exchange (NSE), while others recommended splitting the stake between Vodafone Kenya and the public.

“All of them have a point, only that they need to listen to professional advice,” the Treasury CS said, noting that splitting the shares could lower their value. He explained that giving Vodacom a smaller portion would reduce the negotiating price, and putting the remainder on the market could lead to discounts due to oversupply.

Also Read: Safaricom Confirms Changes Will Not Affect Operations and It Will Remain a Kenyan Company

CS Mbadi also highlighted that Kenya Pipeline Company (KPC) is preparing to go public, and releasing Safaricom shares at the same time could create competition for the same pool of investors, including individuals and institutional players.

“The 15% divestiture is significant. Safaricom already has substantial public shareholding. Our approach ensures strategic allocation while maintaining market stability,” he said.

CS Mbadi added that releasing an additional 5% to the market is not off the table, but timing is critical to avoid saturating the market with the same class of shares.

He also compared the current divestiture to previous ones, which were made by previous regimes, noting that 15% being sold now is expected to raise KSh 204 billion, more than earlier share releases by Presidents Moi and Kibaki.

“Splitting the shares is an idea, and good suggestions are welcome, but there is a reason for the strategy we are following,” CS Mbadi stated.

Treasury CS Fires Back at Kiharu MP

At the same time, CS Mbadi responded to Kiharu MP Ndidi Nyoro, a vocal critic of the Safaricom sale who claimed the government had undervalued the shares.

Also Read: Regulators Back Sale of Government’s Safaricom Stake

“There are various ways of valuing assets and shares. As a finance expert, I was trained in corporate finance, accounting, and share valuation,” CS Mbadi said.

“If MP Nyoro was serious about his claim, he should have presented a clear valuation method. You cannot rely on street talks.”

He explained that the government’s advisors used established valuation methods, including a six-month average market price, and applied a premium to reflect the strategic nature of the transaction.

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