The Kenyan government, through the National Treasury, plans to sell a part of its shareholding in Safaricom, the country’s largest telecommunications provider.
In an interview with Business Daily, Treasury Cabinet Secretary (CS) John Mbadi said this move is part of a broader government strategy to raise Ksh 149 billion in the 2025/26 financial year by divesting from state-owned companies.
The government currently owns a 35% stake in the operator, valued at approximately Ksh 280 billion. According to CS Mbadi, Safaricom remains the only state-owned enterprise that can deliver revenue targets by selling state assets.
“Safaricom is the big one that can give us the kind of money that we are looking for,” Mbadi told Business Daily.
Safaricom is a highly profitable company and a significant player in the East and Central African telecommunications market, known for its mobile money service M-PESA. In the year ending March 31, 2024, the telco company reported earnings before interest and tax of about Ksh 139.9 billion, becoming the first regional company to cross the billion-dollar mark.
The company was initially a joint venture, with the Kenyan government holding a 60% stake. In 2020, the government reduced its shareholding from 60% to the current 35% through an Initial Public Offering (IPO).
Read more: Safaricom Smashes Records with Ksh.388.7B Revenue, Ethiopia Expansion Boosts Growth
