The National Treasury plans to sell a portion of its 35% stake in Safaricom, the country’s largest telecommunications provider.
Treasury Cabinet Secretary (CS) John Mbadi stated that the shares are valued at approximately Ksh280.5 billion.
This positions Safaricom as the only State-owned entity capable of generating the amount the government seeks through asset sales in the current financial year ending June 2026.
The sale will be conducted before June 2026 to raise Ksh149 billion through privatisation efforts.
He explained that other State enterprises are unsuitable for sale because they have been operating at a loss for years, have been mismanaged, or are not structured as limited liability companies, making them unattractive for disposal.
“Safaricom is the big one that can give us the kind of money that we are looking for,” Mbadi told Business Daily.
The government and Vodacom each own 35% of the operator, while Vodafone owns 5%, and the remaining 25% is free float.
How the Govt May Sell Safaricom Stake
This planned disposal of the government’s stake in Safaricom may take the form of a secondary Initial Public Offering (IPO) or an auction to a high-net-worth investor for a block sale.
A secondary IPO involves the government selling part of its shareholding in the open market at the bourse, with the proceeds going to the exchequer rather than the company’s coffers.
This was similar to the 2008 IPO, where the government sold 25 percent of its shares in the telco.
Also Read: Deadline Nears for Safaricom Africa’s Accelerate 360 Internship Program; How to Apply
In the 2008 IPO, 860,600 investors applied for 8.6 billion shares—oversubscribing the offer of 1.36 billion shares by 532 percent.
The sale raised Ksh51.75 billion, exceeding the Ksh40 billion target.
It is also expected to be the single largest transaction in the region by deal size.
The transaction is likely to attract global private equity firms looking to stake their claim in Safaricom.
Also Read: Safaricom Announces Dividend for Shareholders After Ksh69.8 B Profit
Amount Govt Can Raise from the Sale
Safaricom is the most capitalised firm on the Nairobi Securities Exchange (NSE) due to its stable revenues and cash flows.
Analysts predict that selling a 5 to 10 percent stake in Safaricom could raise between Ksh39.8 billion and Ksh79.7 billion at the current share price of Ksh19.90.
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