Kenya’s plan to partially divest its stake in Safaricom is emerging as a central pillar in the State’s Sh149 billion privatisation programme, with analysts positioning the telco as one of the few remaining “prime assets” capable of attracting large-scale investor bids. The government is expected to offload part of its shareholding once the long-awaited privatisation framework is activated.
A disposal of just 10 percent of the State’s stake could fetch approximately Sh119.6 billion at current market valuations, making Safaricom the single most significant contributor to the Treasury’s 2025-26 privatisation targets. Analysts indicate the government may opt for a negotiated off-market block sale to strategic or private equity investors, a route likely to command a premium, rather than a public secondary offering.
The strategy aligns with growing interest from institutional investors, particularly Vodacom, which already holds a 39.9% stake and has expressed willingness to acquire additional shares once the divestiture is launched. Market observers say deeper strategic ownership could reshape the firm’s governance and long-term investment outlook.
The planned sale comes at a time Safaricom is reporting stronger financial performance, reinforcing its attractiveness to buyers. The telco posted Sh42.7 billion in half-year profit, a 52.1% increase, driven by double-digit M-Pesa growth and improved performance in Ethiopia. Revenue rose 11.1% to Sh199.9 billion, with M-Pesa contributing Sh88.1 billion and mobile data Sh44.4 billion, surpassing voice services.
With only a handful of State-owned enterprises currently viable for disposal,among them Kenya Pipeline Company,Safaricom is expected to play a pivotal role in raising capital, reducing borrowing pressure, and advancing the government’s economic reform commitments.
