Kenya Lawmakers Back $1.5B Safaricom Stake Sale to Fund Infrastructure

Two parliamentary committees in Kenya have recommended approval of the government’s plan to sell part of its stake in Safaricom, clearing an early legislative hurdle for the transaction. The Public Debt Committee and the Privatisation Committee said they support the proposal to sell 15 percent of the state’s shares in the Nairobi-listed telecom operator.

The sale is expected to raise about KES204 billion, or roughly $1.5 billion.

Lawmakers said the proceeds should be directed to the National Infrastructure Fund to finance projects such as roads and energy systems.

The committees said the share sale could help reduce fiscal pressure while providing funding for long-term development projects.

Kenya’s government currently owns a 35 percent stake in Safaricom. The telecom operator’s largest shareholder is Vodacom Group.

Treasury officials argue that selling part of the stake would raise capital without increasing public debt while supporting Safaricom’s regional expansion strategy.

Safaricom remains one of Kenya’s most profitable companies and a major contributor to government revenue through taxes and dividends.

Its mobile money platform M-Pesa plays a central role in the country’s digital economy.

The committee recommendation now moves to the full house of the Parliament of Kenya for debate and final approval.

The proposal comes as the government seeks new funding sources to address rising debt servicing costs.

Kenya has also pursued other asset sales and privatisation initiatives, including the recent Kenya Pipeline Company initial public offering, which raised KES112 billion.