The Kenyan government has formalized a significant long-term partnership with Vodacom Group, marked by the sale of a 15 percent stake in Safaricom shares to Vodacom. The agreement, signed in Nairobi on December 4, 2025, by Treasury CS John Mbadi and Vodacom Group CEO Shameel Joosub, is set to generate substantial funds for the nation's development.

This partial divestment successfully raised Sh244.5 billion in aggregate proceeds for the government. The transaction involved the sale of six billion ordinary shares, with the government noting that the deal secured a 23.6 percent premium on the six-month volume weighted average price, underscoring its financial prudence.

The proceeds from this strategic sale are earmarked for critical infrastructure projects across Kenya. These include investments in energy, roads, water, and airports, which are pivotal components of President William Ruto’s ambitious plan to transform Kenya into a first-world economy. This development strategy requires Sh5 trillion, which the President aims to raise without imposing additional debt burdens on Kenyans.

CS John Mbadi highlighted that the funds from this transaction will serve as the seed capital for the establishment of two crucial financial instruments: the National Infrastructure Fund and the Sovereign Wealth Fund. Mbadi urged Parliament to expedite the approval of the necessary instruments to ensure these funds are operational concurrently with the completion of the share transfer. He emphasized that this move reflects a broader national objective of mobilizing non-tax revenue responsibly to support sustainable public finances while safeguarding national interests.

Furthermore, the divestment aims to bolster Safaricom’s capacity to invest in the next generation of digital infrastructure and services. This includes advancements in 5G technology, fiber networks, fintech innovations, and regional expansion initiatives, positioning Safaricom at the forefront of digital transformation.

In an accompanying internal reorganization, Vodacom Group is set to acquire Vodafone International Holdings B.V.’s 12.5 percent stake in Vodafone Kenya, thereby gaining 100 percent ownership of Vodafone Kenya. Vodacom Group Chief Executive Shameel Joosub reaffirmed the firm’s steadfast commitment to Safaricom’s enduring growth and success.

Safaricom Chief Executive Peter Ndegwa echoed this sentiment, stating that Safaricom’s operations, leadership, and strategic direction remain robust. He reiterated the company’s focus on delivering innovative products and services that uplift its customers and actively contribute to Kenya’s overarching digital ambition.