Why the Government is Planning to Sell a Mega Stake in Safaricom
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The Kenyan government is preparing to offload a large portion of its stake in Safaricom, the country’s largest telecom operator, by June 2026 in an effort to raise KSh 149 billion through privatisation.
This move is part of the State’s plan to generate revenue in the 2025/26 financial year without imposing new taxes, amid growing fiscal pressure.
Treasury Cabinet Secretary John Mbadi said the government views Safaricom as the most viable candidate for a high-value divestiture, given its market size, profitability, and investor appeal.
“There is talk that if we could off load more of our ownership of Safaricom, where we are likely to get the Sh149 billion through privatisation in the 2025/26 financial year,” he said.
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Safaricom is a publicly listed company on the Nairobi Securities Exchange (NSE), with a market capitalization of Ksh 799.28 billion as of May 2025.
As of 2024, they control approximately 65.7% of SIM subscriptions, 69.2% of the voice market, and 92.2% of the SMS market. Their subscriber base is estimated to be around 47 million.
It holds more than 65.2% of Kenya’s overall market share, provides over 1.2 million direct and indirect jobs, and contributes about Sh1. 21 trillion to the Kenyan economy annually.
Its mobile money platform, M-Pesa, and data services continue to generate stable and predictable revenues, features that have attracted growing interest from global private equity firms seeking telecom investments across Africa.
The government currently owns a 34.9% stake in Safaricom, worth an estimated KSh 280.5 billion. This follows a 25% sale in 2008 through an initial public offering (IPO) that raised KSh 51.75 billion. The IPO, which offered 10 billion shares, was oversubscribed by 532 percent.
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Officials say the upcoming sale could be structured either as a secondary IPO, similar to the 2008 model, or as a block sale to large investors. A secondary IPO would invite public and institutional participation, potentially stimulating trading activity on the NSE.
On the other hand, a block auction could involve selling shares directly to global private equity firms or other high-net-worth investors.
Privatisation is being considered in the context of Kenya’s rising public debt, which increased from USD 35.39 billion in 2018 to USD 83.5 billion in 2024.
The Treasury is prioritizing asset sales to avoid unpopular tax hikes. Safaricom, along with Kenya Pipeline Company (KPC), are among the few profitable state-owned enterprises that could attract buyers.
If completed, the sale promises to be the largest transaction in the region.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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