National Treasury CS John Mbadi. /FILE
National Treasury Cabinet Secretary John Mbadi has said the government expects to receive Sh204.3 billion from the sale of an additional 20 per cent stake in Safaricom by Friday, marking the completion of one of Kenya's biggest corporate transactions in recent times.
The government sold 6,009,814,200 ordinary shares to South African telecommunications giant Vodacom at Sh34 per share, days after the Court of Appeal cleared the transaction.
The acquisition increased Vodacom's shareholding in Safaricom PLC to 55 per cent, making it the majority shareholder, while the Government of Kenya retained a 20 per cent stake in the Nairobi Securities Exchange-listed company.
The deal was first announced in December 2025. Speaking on Citizen TV on Wednesday night, Mbadi said all legal hurdles had been cleared and the transaction had been concluded.
"We don't have any legal hurdles now and we have concluded the transaction. I'm very confident that on Friday, we will have the money in our accounts, that is the over Sh200 billion," he said.
Mbadi said the proceeds will be deposited into the National Infrastructure Fund, the same fund that received Sh103 billion raised from the Kenya Pipeline Company initial public offering.
The National Infrastructure Fund is a corporate investment vehicle established to blend public seed capital with private sector financing for large-scale, commercially viable infrastructure projects.
According to Mbadi, the proceeds will finance critical infrastructure, including roads, energy systems, water infrastructure and airports, as part of the government's long-term development agenda.
He dismissed suggestions that the money should instead be deposited into the Consolidated Fund, saying doing so would contravene the law.
The Consolidated Fund is the primary account into which national government revenues are paid and from which public expenditure is financed, unless otherwise provided by law.
Mbadi said strict accountability measures are in place to ensure the Safaricom proceeds are used prudently and solely for their intended purpose, adding that no money will be spent until the fund's board is fully constituted.
"We have completed the interviews for independent board members and we will make the announcement very soon," he said.
He added that the board would be in place within two weeks, noting that the Governing Council, which oversees the fund, is already operational.
The council is chaired by the Treasury Cabinet Secretary and includes, among others, the Attorney General and the Central Bank of Kenya Governor.
The board will comprise the chief executive officer and four independent members.
When announcing the transaction, Mbadi described the sale as a strategic move to unlock part of the value created by the government's long-term investment in Safaricom spanning 25 years.
He said the transaction was conducted lawfully, transparently and with Parliament's approval, adding that Kenya would remain Safaricom's home despite Vodacom becoming the company's majority shareholder.
