Kenya’s government is set to use the funds from a partial divesture of its shareholding in Safaricom to invest in priority infrastructure and to advance its digital economy.
A senior government official has been speaking after the transaction announced on Thursday, which saw Vodacom acquire a 15% stake in Safaricom from the government.
The sale will generate $1.56 billion (approximately KSh204 billion) for Kenya, according to Kris Kiptoo, principal secretary of the National Treasury.
He disclosed that the government will use the money accumulated from this deal to seed for the National Infrastructure and Sovereign Wealth Funds, thereby unlocking long-term, sustainable financing for priority infrastructure.
“The deal also strengthens Kenya’s foreign exchange reserves, supports currency stability and advances our digital economy, innovation and job creation agenda,” Kiptoo said.
Kiptoo hailed the National Infrastructure Fund as representing a bold shift in how Kenya financed development by moving from debt to sustainable investment anchored in strategic asset mobilisation.
There was a significant presence of government officials at the signing ceremony featuring the government, Safaricom and Vodafone. Besides Kiptoo, there was John Mbadi, Cabinet secretary for National Treasury; attorney general Dorcas Oduor and the Kenya Central Bank governor, Kamau Thugge.
Through the acquisition, and, combined with a five percent stake acquired from Vodafone, Vodacom will increase its total shareholding in Safaricom from 35% to 55%, giving it effective control of the company.
The deal is seen as a key step in Vodacom's strategy to accelerate growth in high-growth markets including Kenya and Ethiopia.
It is set to close in the first quarter of 2026, pending final regulatory and governmental approvals in Ethiopia, Kenya and South Africa, where Vodacom is headquartered.
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