The Central Bank of Kenya (CBK) has formally supported the government's intention to divest a 15% stake in Safaricom PLC, describing it as a reasonable economic measure to alleviate the country's increasing debt burden.
The endorsement positions the $1.6 billion (Sh204.3 billion) deal as a critical release valve for the National Treasury.
By selling a portion of its 35% ownership to South Africa's Vodacom Group, the government intends to raise non-debt capital to fund important infrastructure projects without further squeezing the private sector in the domestic credit market.
While central banks typically remain neutral on state asset liquidations, CBK governor Kamau Thuge, in submissions to parliament on Tuesday, noted that the backing stems from the current macroeconomic climate.
As of early 2026, Kenya’s public debt remains a primary concern, standing at Ksh 12,054 billion (about 68.9 percent) as of the end of September 2025, compared to Ksh 11,810.8 billion (about 67.7 percent) at the end of June 2025
The Treasury has prioritised non-tax revenue mobilisation to fund its budget.
‘’By avoiding a further build-up of debt, this innovative financing will help us move towards a sustainable debt position, and to our debt anchor of 55% NPV-of-debt relative to GDP,’’ the governor said.
Overall, CBK states that the proposed divestment of Safaricom will have a beneficial macroeconomic impact, including enhanced foreign exchange reserves and exchange rate stability.
Meanwhile, Safaricom CEO Peter Ndegwa reassured a joint parliamentary committee on January 19, 2026, that the telco’s operational core remains in Nairobi.
"Safaricom remains subject to oversight by the Communications Authority of Kenya, the Central Bank of Kenya, and the Capital Markets Authority," Ndegwa stated, emphasising that the deal is a shareholder-level restructuring that won't change management.
To protect national interests, the agreement includes strict conditions intended to preserve the Kenyan identity of the firm. The chairman and CEO must remain Kenyan citizens, and the government will retain a 20% strategic stake along with two board seats.
Furthermore, the CBK maintains full authority over M-PESA, ensuring that its role as a national utility is not compromised by the change in shareholding levels.
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