By Benadeta Mwaura - Reporter
Kenya, 2 July 2026 - The Kenyan government expects to receive more than KSh200 billion on Friday following the completion of the sale of its 15% stake in Safaricom Plc to South Africa's Vodacom Group, marking one of the country's largest privatization transactions in recent history.
National Treasury Cabinet Secretary John Mbadi said the funds will be deposited into the National Infrastructure Fund (NIF) at the Central Bank of Kenya, where they will serve as seed capital for financing strategic infrastructure projects rather than supporting recurrent government expenditure.
"I am very confident that on Friday we'll have the money in our accounts," Mbadi said during an interview on a national TV Station.
The Treasury expects to receive more than KSh 200 billion from the share sale, with the proceeds earmarked for investments in roads, energy, water, transport and other commercially viable public infrastructure projects through the newly established National Infrastructure Fund.
Mbadi disclosed that the National Infrastructure Fund already holds approximately KSh 103 billion, largely from the proceeds of the Kenya Pipeline Company initial public offering, meaning the latest inflow will significantly strengthen the government's capacity to finance major development projects without increasing public debt.
The payment follows a Court of Appeal decision earlier this week lifting conservatory orders that had temporarily blocked the transaction, allowing the government to finalize the long-awaited disposal of part of its shareholding in East Africa's largest telecommunications company.
Under the deal, the Kenyan government has sold 6.01 billion Safaricom shares at KSh 34 per share, raising KSh 204.3 billion from the transaction. In addition, Vodacom paid KSh 40.2 billion upfront for the right to receive future dividends attached to the government's remaining stake, bringing the State's immediate proceeds from the broader transaction to approximately KSh 244.5 billion.
Following completion of the transaction, the government's shareholding in Safaricom has reduced from 35% to 20%, while Vodacom's ownership has increased to 55%, giving the South African telecommunications giant majority control of the company. Public investors continue to own the remaining 25% of the listed telecommunications firm.
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The transaction has also become one of the largest block trades ever executed on the Nairobi Securities Exchange (NSE), significantly boosting market turnover and marking a milestone in Kenya's capital markets.
The sale has, however, attracted public debate over national ownership and data sovereignty, with critics questioning whether reducing the government's stake in Safaricom could expose sensitive customer information to greater foreign control.
Mbadi dismissed those concerns, arguing that consumer data protection is governed by Kenyan law rather than government shareholding.
"Data protection is protected by our Kenyan laws; it is not about shareholding in a specific company. There is no time that the Kenyan government has used its shareholding position to influence decisions on data and privacy. It is a fallacy; it is the laws of Kenya that protect the data," Mbadi said.
The government has consistently maintained that the Safaricom divestiture forms part of a broader strategy to unlock capital tied up in mature State assets and redirect it toward infrastructure investments that can stimulate economic growth without relying heavily on additional borrowing.
Officials say the National Infrastructure Fund is expected to finance commercially viable projects capable of generating long-term economic returns while easing pressure on the national budget.