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The Kenya Bankers Association has supported a 15 percent government divestiture in Safaricom, urging that 5% be reserved for the public to ease debt pressures and deepen capital markets.
Safaricom dealers have petitioned Parliament over the planned 15 percent state divestiture, warning it could alter the partner business model, hurt SMEs, and affect financial inclusion and digital services.
ICPAK Chairman Elizabeth Muvui, speaking before the legislators, cautioned that the proposed share price has not been supported by a clearly disclosed valuation methodology,
According to the Treasury, funds raised from the transaction will be channelled to priority sectors including energy, roads, water, airports and digital infrastructure.
The partial divestiture is expected to generate approximately Sh204 billion in aggregate proceeds through the divestiture of 15 percent stake in Safaricom at a significant premium of 23.6 percent to the 6-month volume weighted average price ending 2 December 2 2025.
The plan aims to generate about Sh204.3 billion from the share sale and an additional Sh40.2 billion upfront payment from Vodacom Group, while allowing the government to retain a 20 per cent stake and board representation to safeguard national interests.
Safaricom first entered Ethiopia in 2022, with Standard Bank acting as both advisor and financier. Since then, the telecom firm has invested $2.27 billion (Sh292.77 billion) in telecom and digital financial infrastructure across the country.
The bank served as the sole arranger, lender, and facility agent for the term facility, also providing advisory services to ensure the funding meets Safaricom’s specific operational and market needs.
Safaricom has in the past turned to green financing, including a Sh30 billion sustainability-linked loan from local lenders such as KCB, Absa Kenya, Standard Chartered Kenya and Stanbic Kenya. A green bond is a fixed-income instrument created to support climate and environmental projects.
Safaricom maintained its dominance by adding 79,288 fixed internet customers during the same period, increasing its market share from 34.3 percent to 35.6 percent. Other providers such as Jamii Telecoms (Faiba), Ahadi Wireless, Vilcom Network, and Mawingu also strengthened their subscriber base, making it harder for Starlink to expand its footprint.
Mbadi explained that relying on projected future dividends assumes Safaricom will maintain its current profitability, which is not guaranteed.
Safaricom has disclosed a Sh204.3 billion deal for Vodafone Kenya to buy the State’s 15% stake and a Sh68.1 billion Vodacom reorganisation, triggering takeover rules and multiple regulatory approvals.