National Treasury Cabinet Secretary John Mbadi has explained how proceeds from the government’s sale of 15% stake in Safaricom to Vodafone Kenya Limited will be utilized.
Speaking during a media briefing at the JW Marriott Hotel in Westlands on Thursday, December 4, 2025, Mbadi said the government expects to receive roughly Ksh 244.5 billion from the divestiture.
According to the CS, the funds from this transaction will be the seed capital for the newly established National Infrastructure Fund and the Sovereign Wealth Fund.
He reiterated that the funds will be directed into the two funds once the transaction is concluded.
Govt to Use Proceeds from Sale of Shares for Infrastructure Development
Mbadi also urged Parliament to expedite the approval of the instruments required to establish the funds, saying they should be operational by the time the transfer is completed so that Kenyans can begin benefiting immediately.
According to the CS, the partial divestiture has earned the government a 23.6 percent premium on Safaricom’s six-month volume-weighted average price.
Also Read: Safaricom Confirms Acquisition Plans of Govt’s Stake by Vodafone Worth Ksh 244.5 Billion
He described this as a key step in the government’s plan to raise capital for priority infrastructure investments, including energy, roads, water, and airports.
“Investment in priority national infrastructure is aimed at ensuring that it becomes a powerful tool to fuel our economy, accomplish strategic goals, and scale public investment by bridging institutional capital with public projects,” Mbadi said.
At the same time, Mbadi clarified that the acquisition of the 15 percent government stake should not be mistaken for a takeover.
“Let me highlight the governance reality: this is a shareholder-level adjustment, not an operational takeover,” he said.
He added that Safaricom’s management and Board will continue running day-to-day operations and stressed that the government will remain a strategic shareholder.
He further stated that the government will fulfil all statutory disclosure obligations through the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE), and will continue engaging Parliament and the public through established democratic processes.
Details of the Proposed Structure
Mbadi’s remarks came hours after Safaricom announced an ownership restructuring that could see Vodafone Kenya Limited acquire the Government of Kenya’s 15 percent stake for KSh 244.5 billion.
As part of the restructuring, Vodacom Group Limited, which currently owns 87.5 percent of Vodafone Kenya, will acquire the remaining 12.5 percent stake from Vodafone International Holdings, giving it full ownership of Vodafone Kenya and an indirect 55 percent shareholding in Safaricom.
Also Read: Mbadi Explains How Kenya Can Chart Its Own Path Without Relying on Foreign Aid
Under the proposed structure:
- Vodafone Kenya will acquire the government’s 15 percent shareholding in Safaricom.
- Vodacom Group Limited will acquire Vodafone’s 12.5 percent stake in Vodafone Kenya, bringing the company fully under Vodacom’s control.
- The government will retain its 20 percent direct ownership in Safaricom.
- Public investors will continue to hold approximately 25 percent.
Additionally, Vodafone Kenya has agreed to make an upfront payment of Ksh 40.2 billion to the government in exchange for the right to receive future dividends tied to the state’s remaining 20 percent stake.
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