Explained: How Govt Plans to Spend Safaricom – Vodacom Ksh 244.5 Billion Deal
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The Kenyan government says the Ksh 244.5 billion it received from the sale of part of its Safaricom stake will be invested in long-term infrastructure projects through the National Infrastructure Fund.
The money will not go into the government’s day-to-day budget. Instead, it will finance projects aimed at improving the country’s transport, energy, water and aviation sectors.
The government raised the Ksh 244.5 billion after selling part of its Safaricom shareholding, reducing its stake in the telecommunications company from 35% to 20%, while Vodacom’s stake increased to 55%.
The proceeds from the Safaricom share sale have been deposited into the National Infrastructure Fund (NIF), a special fund established to finance major development projects.
The fund is held at the Central Bank of Kenya and is managed under a legal framework that outlines how the money can be invested and spent.
The government has said the fund is designed to support projects that promote economic growth while reducing reliance on borrowing.
Priority Areas for Investment
According to the government, the Ksh 244.5 billion will mainly finance infrastructure projects in key sectors, including:
- Roads and highways
- Energy generation and transmission
- Water supply and irrigation
- Airports and aviation infrastructure
These investments are expected to improve public services, create jobs and support economic growth across the country.
Also Read:Treasury Reveals Why It Scrapped Costly Nairobi-Nakuru Highway Agreement
How the Infrastructure Fund Will Be Managed
The National Infrastructure Fund is overseen by a governing council chaired by the Cabinet Secretary for the National Treasury.
The council is responsible for approving investments and ensuring the money is used for projects allowed under the law.
The fund is also subject to annual audits and oversight to promote accountability.
Also Read:Mbadi Appoints Six Members to National Infrastructure Fund Board
Why the Government Created the Fund
The government says the fund will help finance major infrastructure projects without placing additional pressure on public debt.
Instead of using the money for recurrent expenditure, the proceeds are intended to create long-term assets that benefit the economy for years to come.
The government believes investments in roads, energy, water and airports will improve connectivity, support businesses and attract more investment into the country.
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Treasury CS John Mbadi at parliament on June 11, 2026 during the reading of the 2026/2027 budget. PHOTO/ KBC