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The government is preparing to partially offload its stake in telecom giant Safaricom in a move that could unlock over Sh149 billion in the next financial year, as part of a renewed privatisation drive targeting State-owned assets.
Treasury Cabinet Secretary John Mbadi told Business Daily that Safaricom is the only State-owned asset currently robust enough to deliver a huge transaction.
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Currently, the government owns a 34.9% stake in Safaricom, worth an estimated Sh280 billion.
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The last major sale of government shares in the telco occurred during its 2008 IPO, when a 25% stake was sold, raising Sh51.75 billion in a landmark public offering that attracted over 800,000 retail investors.
Safaricom’s consistent profitability, market dominance, and role in mobile money through M-PESA make it a particularly attractive asset.
The planned divestiture aligns with the government’s broader strategy to raise non-tax revenue while avoiding the introduction of new taxes.
With public debt and spending pressures mounting, policymakers see asset sales as a politically palatable path to fiscal consolidation.
If successful, the Safaricom deal could mark a turning point for Kenya’s privatisation programme, which has faced multiple delays and policy hesitations over the past decade.
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Safaricom performance
Safaricom PLC has made regional history by becoming the first company in East Africa to cross the $3 billion mark in annual revenue, reporting a Sh388.7 billion turnover for the financial year ended March 31, 2025, an 11.2% year-on-year increase.
The telco-turned-tech giant also posted Sh69.8 billion in net income, up 10.8% from the previous year, buoyed by strong performance in both its Kenyan and Ethiopian operations, strategic product innovation, and sustained social impact initiatives.
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Dividend Windfall for Shareholders
As a result of the stellar performance, Safaricom has declared a final dividend of 65 cents per share, bringing the total annual payout to Sh48.08 billion, following an interim dividend of 55 cents issued earlier this year.
In its home market of Kenya, Safaricom continues to deepen its dominance:
Service revenue grew 10.5% to Sh364.3 billion
M-PESA revenue jumped 15.2% to Sh161.1 billion, now accounting for 44.2% of service revenue
Mobile data revenue surged 15.2% to Sh72.9 billion, aided by broader 4G adoption
Voice revenue, defying global decline, edged up 1.6% to Sh80.8 billion
Connectivity business rose by 6.5% to Sh185.2 billion, representing 50.8% of service revenue