Govt Eyes Safaricom Sale: The Bold Plan to Raise Billions

By The Star News Reporter

The Kenyan government is preparing to sell a portion of its 35% stake in Safaricom, the country’s leading telco, in a bold move to generate revenue through asset sales by June 2026.

Why the Govt is Selling Safaricom Shares

National Treasury Cabinet Secretary John Mbadi revealed that the sale is part of a strategy to raise Ksh149 billion in the current financial year. He noted that Safaricom, valued at approximately Ksh280.5 billion, is the only state corporation with the capacity to yield such revenue, unlike other loss-making or structurally unsuitable parastatals.

“Safaricom is the big one that can give us the kind of money that we are looking for,” Mbadi told Business Daily.

How the Sale May Happen

The government is considering two methods for offloading its shares: a secondary Initial Public Offering (IPO) or a block sale to high-net-worth investors. A secondary IPO would mean offering shares to the public through the Nairobi Securities Exchange, with proceeds going directly to the Treasury, not Safaricom.

This mirrors the 2008 Safaricom IPO, where the state raised over Ksh51 billion after a massive oversubscription. The same approach could attract regional and international investors once again.

How Much Could Be Raised?

Market analysts estimate that selling a 5% to 10% stake could bring in between Ksh39.8 billion and Ksh79.7 billion, based on the current share price of Ksh19.90. Given Safaricom’s status as the most capitalized firm on the Nairobi Securities Exchange (NSE), the sale could be the biggest in East Africa.

The potential sale of Safaricom shares could reshape Kenya’s fiscal landscape and attract large foreign investments. However, it also raises questions about long-term state control of strategic assets and public interest in essential services. All eyes will be on the Treasury as it moves forward with this landmark transaction.