• Kenyan government plans to divest part of its Safaricom shares to raise $1.15 billion by mid-2026

• The initiative aims to finance the national budget under a broader privatisation programme

• Safaricom’s strong performance positions it as a key asset for attracting investor interest

Kenya is preparing to sell part of its stake in Safaricom, the country’s largest telecommunications operator, to help raise KES 149 billion ($1.15 billion) by mid-2026. The measure, announced by Treasury Cabinet Secretary John Mbadi, forms part of a broader privatisation strategy designed to finance the 2025/2026 national budget without raising taxes.

Mbadi described Safaricom as one of the few public assets robust enough to generate the necessary revenue. In an interview with Business Daily, he confirmed that the state intends to leverage Safaricom’s market strength to attract investor interest.

The Kenyan government currently holds 34.9% of Safaricom, having sold 25% during the company’s 2008 IPO. Other major shareholders include Vodacom (34.9%), Vodafone (5%), and a 25% free float. The upcoming divestment could be executed through a secondary public offering or a block sale to a strategic investor.

Analysts estimate that a sale of 5 to 10% of the government’s shares could yield between $308 million and $617 million, based on Safaricom’s recent share price of around KES 19.90.

Safaricom is listed on the Nairobi Stock Exchange and is known for stable revenues and cash flows. In the 2024/2025 fiscal year, the company recorded a 3.5% increase in operating profit, reaching KES 94.9 billion, driven by strong domestic performance.

The government’s decision is occurring in a context where many state-owned enterprises lack profitability or strong market value, making them unattractive for divestment. By contrast, Safaricom offers a compelling case for international investors, and the planned sale is also intended to boost confidence in Kenya’s fiscal management and economic outlook.