Kenya to Sell Safaricom Stake to Cut Debt

Kenya plans to privatize part of its Safaricom stake in 2025, raising $1.16B to reduce public debt and expand private investment in Africa’s top telecom firm.

The Kenyan government is set to divest part of its remaining 35% stake in Safaricom PLC, the country’s leading telecommunications provider, in a renewed push to raise KSh149 billion ($1.16 billion) through privatization in the 2025/26 financial year.

This strategic move is part of President William Ruto‘s broader fiscal consolidation plan to reduce public debt and fund development priorities. Finance Minister John Mbadi confirmed the plan during an exclusive interview published by Business Daily on May 27, 2025, stating:

“We are committed to reducing the government’s footprint in commercial enterprises. The Safaricom share sale is part of a larger effort to unlock capital, encourage private sector participation, and raise non-tax revenues.”

Historical Context and Previous Share Sale

Safaricom was partially privatized in 2008, when the Kenyan government offloaded 25% of its shares to the public through the Nairobi Securities Exchange (NSE). That IPO raised KSh50 billion and introduced nearly 800,000 new retail investors to the stock market, becoming one of the most oversubscribed listings in Kenyan history.

Currently, the government retains a 35% stake, while Vodafone Group and Vodacom Group jointly hold 40%. The remaining 25% is publicly traded on the NSE.

The National Treasury has historically viewed Safaricom as a “strategic national asset” due to its dominant market share—over 64% of Kenya’s mobile subscriptions—and its critical infrastructure for mobile money (M-PESA), government revenue collection, and digital innovation.

Budgetary Context and Fiscal Targets

In his Budget Policy Statement (BPS) for FY2025/26, Mbadi outlined that the government plans to raise KSh149 billion from asset disposals, of which the Safaricom share sale is expected to contribute a significant portion. This initiative is meant to bridge a projected budget deficit of 4.8% of GDP and reduce pressure on domestic borrowing.

The announcement follows the passage of the Privatization Act 2023, which streamlined the approval process for selling state assets by replacing the Privatization Commission with a Cabinet-led mechanism.

“Privatization is not about relinquishing sovereignty. It’s about empowering the economy through responsible capital reallocation,” Mbadi emphasized.

Market Reaction and Outlook

Market analysts say the move could reinvigorate trading activity on the NSE and deepen investor confidence. Safaricom shares (SCOM) have been trading at KSh20.40 per share as of May 31, 2025, up 12% year-to-date amid renewed investor optimism and strong earnings performance.

Kenya’s capital markets regulator, the Capital Markets Authority (CMA), welcomed the planned sale.

“We expect this to spur more listings and stimulate broader investor participation, both local and foreign,” said CMA CEO Wyckliffe Shamiah.

What’s Next?

The Treasury is expected to table a proposal in Parliament before the end of July 2025, detailing the size of the stake to be sold, pricing strategy, and investor allocation, with a possible public offering scheduled for Q4 2025.

If successful, the sale will mark a major milestone in Kenya’s privatization drive under the Bottom-Up Economic Transformation Agenda (BETA), which aims to unlock efficiency in state enterprises, grow capital markets, and reduce the burden on public finances.

Key Internal Links in the Story:

Historical context section → Nairobi Securities Exchange (NSE)

Kenyan government → National Treasury website

Safaricom PLC → Safaricom official website

William Ruto → Office of the President

John Mbadi → Parliament of Kenya

Business Daily → Business Daily Africa