Lead

The Kenyan government is set to receive more than Sh200 billion from the sale of a 15 percent stake in telecommunications firm Safaricom to South Africa's Vodacom, according to officials. The proceeds will be channelled into infrastructure development through the National Infrastructure Fund (NIF), which is managed by an independent board.

National Treasury Cabinet Secretary John Mbadi said on Citizen TV that the government expects the funds to hit its accounts on Friday, stating, "I am very confident that on Friday we'll have the money in our accounts." He noted that the NIF, held at the Central Bank of Kenya, already contains about Sh103 billion from the Kenya Pipeline Company initial public offering.

Deputy President Kithure Kindiki addressed public concerns about the use of the proceeds, assuring Kenyans that the funds would not be spent on recurrent expenditure. "The money will go to the National Infrastructure Fund, which is managed by an independent board, to build roads, to build dams, to build railways and to build airports," he said.

Coverage Comparison

The transaction has been widely reported, with coverage from AllAfrica highlighting similar key figures and timelines. Reports indicate that the government's stake in Safaricom has been reduced from 35 percent to 20 percent, while Vodafone Kenya Limited, a subsidiary of Vodacom, has increased its shareholding to 55 percent. Public investors hold the remaining 25 percent.

The completion of the sale follows a Court of Appeal decision that lifted conservatory orders that had temporarily blocked the transaction. This legal development was noted across multiple reports, with some emphasising the government's intention to use the proceeds for infrastructure and others focusing on the court's role in allowing the sale to proceed.

Key Claims

  • The government sold a 15 percent stake in Safaricom to Vodacom for over Sh200 billion.
  • Proceeds from the sale will be invested in infrastructure projects through the National Infrastructure Fund (NIF).
  • The NIF is managed by an independent board.
  • The government's stake in Safaricom was reduced to 20 percent after the sale.
  • Vodafone Kenya Limited's stake in Safaricom increased to 55 percent.
  • Public investors hold 25 percent of Safaricom.
  • The Court of Appeal lifted conservatory orders to allow the sale of the government's stake in Safaricom.
  • The NIF already holds about Sh103 billion from the Kenya Pipeline Company IPO.
  • The government plans to channel proceeds from the sale into the National Infrastructure Fund and the Sovereign Wealth Fund.

Perspectives

Government Officials

Deputy President Kithure Kindiki and Treasury CS John Mbadi have both publicly expressed confidence in the transaction, emphasising that the proceeds will be used for infrastructure projects and will not be diverted to recurrent spending. Kindiki contrasted the current sale with past government share disposals, which he said lacked accountability.

Legal Challenge Petitioners

The sale had faced legal challenges from individuals including Fredrick Ogola and Tony Gachoka, and a separate petition led by former Vice President Kalonzo Musyoka, who raised concerns over data sovereignty, public participation, and other constitutional issues. These petitions led to court orders that temporarily blocked the sale until the Court of Appeal lifted them.