The Treasury Cabinet Secretary John Mbadi has acted to address public worries surrounding the government’s sale of a 15 percent share in Safaricom to Vodafone. This transaction is valued at approximately $1.56 billion (Ksh204 billion), along with an additional Ksh40.2 billion dividend pre-payment, bringing the total to Ksh244 billion.
In an interview on December 4, 2025, Mbadi characterized the deal as a deliberate strategy to realize the inherent value of what he termed a fully developed asset, rather than being a desperate sell-off. He emphasized that the government’s intention was to generate value from Safaricom, which he described as a well-established asset for the Republic of Kenya.
Mbadi further allayed concerns that the substantial funds generated would be used for everyday government expenditures or to prop up the budget. He asserted instead that the money would be allocated to enduring developmental projects.
He acknowledged public apprehension that the funds from this 15% divestment, and any subsequent privatizations, might be spent on immediate needs or general budgetary support. However, he clarified that the government’s aim is to productively utilize these resources by establishing a national infrastructure fund. This fund would then serve to connect private sector and institutional investors with public investment opportunities in infrastructure.
Mbadi explained that Kenya’s financial capacity is currently restricted, leaving few viable options for funding major development initiatives. He pointed out that the traditional methods – increased taxation or taking on more loans – are no longer feasible, despite the pressing need for substantial investment in various projects.
The Cabinet Secretary further emphasized that ongoing economic expansion necessitates significant capital expenditure in transport and power networks. He cited research indicating that Kenya needs at least seven percent economic growth to generate sufficient jobs for its growing young workforce, questioning how such expansion could be achieved without more investment in infrastructure like roads. He also noted that inadequate transportation routes to neighboring Uganda and Tanzania, coupled with unpredictable climate-dependent farming and exorbitant energy prices, continue to hinder economic growth.
Mbadi maintained that the government’s income from its remaining stake in Safaricom would still be substantial even after the sale. He projected that while the government might relinquish approximately seven billion shillings per year, it would still receive close to Ksh10 billion annually based on existing performance levels, dispelling notions of a complete loss of revenue.
The deal has attracted criticism from Kiharu MP Ndindi Nyoro, who contends that pricing the shares at Ksh34 significantly undervalues the telecommunications behemoth. Despite this opposition, Mbadi affirmed that it is an opportune moment to sell off part of the stake, referencing rapid changes in technology and the demands for wider regional presence.
The total proceeds of Ksh244 billion will be used to bolster both the National Infrastructure Fund and the Sovereign Wealth Fund, while the government will still hold a controlling interest in Safaricom.
