• Kenya sells 15% stake in Safaricom to Vodacom for $1.8 billion
• Transaction reduces state ownership to 20% and gives Vodacom majority control above 50%
• Proceeds will fund national infrastructure projects under economic recovery plans

The Parliament of Kenya approved the partial sale of public assets in Safaricom on Tuesday, March 31. Lawmakers unanimously endorsed the transaction, which transfers a 15% stake to Vodacom.

The deal carries a valuation of 240 billion Kenyan shillings, equivalent to about $1.8 billion. The government will allocate the proceeds to the National Infrastructure Fund, which supports the country’s economic recovery strategy.

The National Assembly authorized the Kenyan Treasury to complete the sale starting April 1 through a block transaction on the Nairobi Securities Exchange.

The state will sell 6 billion shares at a unit price of 34 shillings. This divestment will reduce public ownership to 20%. At the same time, Vodacom will increase its stake beyond 50% and secure majority control of Safaricom.

Authorities framed the transaction as a strategic lever to mobilize funding for public investment. The government plans to channel resources into transport, energy, and digital connectivity infrastructure.

Officials also highlighted safeguards introduced by parliamentarians. These measures aim to protect jobs and preserve the interests of local partners.

However, the transaction has drawn criticism from parts of the political opposition. Some lawmakers argued that the government undervalued the asset and warned about reduced national influence over a strategic company.

Safaricom reported revenue exceeding 390 billion Kenyan shillings in its latest fiscal year. The company plays a central role in Kenya’s digital economy, driven by growth in data services and mobile money through M-Pesa.

Meanwhile, Vodacom aligned the acquisition with its “Vision 2030” strategy, which targets expansion in high-growth African markets and optimization of its digital portfolio.

The group already operates in multiple countries, including Tanzania, the Democratic Republic of Congo, and Mozambique.

Vodacom could leverage its majority stake in Safaricom to generate operational synergies, share technology, and accelerate regional expansion projects, particularly in Ethiopia.

Samira Njoya