The government has pulled the trigger on its most ambitious economic gamble in a decade, surrendering a 15 percent stake in Safaricom to raise a staggering KES 244.5 billion (approx. $1.6 billion).

This transaction marks the cornerstone of the 2025 privatization strategy, signaling a definitive shift from debt-fueled growth to asset-backed liquidity. For the taxpayer, the deal promises new infrastructure projects without the stinging bite of fresh international loans, though it fundamentally alters the ownership structure of Kenya’s corporate crown jewel.

A Shift in Power

Executed on December 4, 2025, the sale saw the government transfer the shares to the Vodafone Kenya/Vodacom Group consortium. This strategic divestiture has reshuffled the boardroom dynamics of the region's most valuable company.

According to Treasury filings, the new shareholding structure is as follows:

• Vodacom Group/Vodafone: Stake increases to 55 percent, cementing majority control.
• Government of Kenya: Direct shareholding drops from roughly 35 percent to 20 percent.
• Public Investors: The remaining 25 percent continues to float freely on the Nairobi Securities Exchange (NSE).

Treasury officials defended the valuation, noting that the state secured a premium of approximately 23.6 percent over the recent average trading price. This premium was cited as a critical justification for the timing, ensuring the exchequer did not sell the national asset at a discount during market fluctuations.

Beyond the Balance Sheet

The narrative pushed by the state is one of fiscal prudence rather than desperation. Proceeds from this historic sale are not destined for the recurrent expenditure black hole—salaries and allowances—but are strictly ring-fenced.

The capital has been earmarked as seed funding for two critical vehicles:

• The National Infrastructure Fund (NIF): Targeted at financing high-capital projects in energy, transport, and water.
• The Sovereign Wealth Fund: A long-term investment vehicle designed to preserve wealth for future generations.

By capitalizing these funds, the administration aims to finance major upgrades, such as airport modernization and water connectivity, without increasing the sovereign debt ceiling. It is a pivot that analysts suggest could stabilize the shilling by reducing the demand for dollar-denominated loans.

As the state retreats from the boardroom to the regulator’s chair, the question remains: will this massive cash injection be the silver bullet for Kenya’s infrastructure deficit, or will the loss of majority influence in Safaricom prove too high a price for liquidity?