Government Plans to sell its stake in Safaricom Plc
Dear Listers, The Kenyan government plans to sell a significant portion of its 35% stake in Safaricom PLC as part of a broader strategy to raise KSh 149 billion (about $1.16 billion) during the 2025/26 financial year to finance the national budget. Two main approaches are being considered: a secondary Initial Public Offering (IPO) on the Nairobi Securities Exchange, or a block sale targeting high-net-worth investors, potentially attracting regional and international buyers. Safaricom, whose estimated value is at around KES 280.5 billion, is the largest and most valuable state-owned enterprise capable of generating substantial revenue compared to other parastatals. The government receives healthy dividends of about KES 16 billion annually from the company, which now has operations in neighbouring Ethiopia. Read more: https://www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-st... Is this a smart move? What say you? *Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ==================================================== *“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar*
Good morning, From your post: If Safaricom estimated value is approx KES 280.5B: GoK 35% stake would be KES 98.18B, Giving annual dividends of KES 16B, which is 16.3% return. Under the current economic situation, I think you have to be a mad man to offload such asset. But I don't know the whole story. I just hope, if the responsible people in government want to go ahead with this, there is justifiable merit and a clear positive outcome for the country, and that it will be communicated transparently and diligently. Rgds, Alloys On Mon, May 26, 2025 at 10:55 AM Victor Kapiyo via KICTANet < [email protected]> wrote:
Dear Listers,
The Kenyan government plans to sell a significant portion of its 35% stake in Safaricom PLC as part of a broader strategy to raise KSh 149 billion (about $1.16 billion) during the 2025/26 financial year to finance the national budget.
Two main approaches are being considered: a secondary Initial Public Offering (IPO) on the Nairobi Securities Exchange, or a block sale targeting high-net-worth investors, potentially attracting regional and international buyers.
Safaricom, whose estimated value is at around KES 280.5 billion, is the largest and most valuable state-owned enterprise capable of generating substantial revenue compared to other parastatals. The government receives healthy dividends of about KES 16 billion annually from the company, which now has operations in neighbouring Ethiopia.
Read more: https://www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-st...
Is this a smart move? What say you?
*Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ====================================================
*“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* _______________________________________________ KICTANet mailing list -- [email protected] To unsubscribe send an email to [email protected] Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Archived at: https://lists.kictanet.or.ke/archives/list/[email protected]/mes...
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Dear Victor, Thanks for sharing this issue about *Safaricom Stake Sale – Risking Digital Sovereignty for Short-Term Relief.* While the government’s urgency to raise KSh 149 billion to plug the 2025/26 budget deficit is understandable, the plan to sell part of its 35% stake in Safaricom PLC raises serious concerns, not just fiscal, but legal, cybersecurity, and crisis management-related. Safaricom is far more than a profitable parastatal. It is one of Kenya’s most strategically significant digital infrastructure assets. Its reach extends deep into government services, mobile money platforms, national emergency communications, and citizen data systems. It is, in essence, the backbone of Kenya’s evolving digital state. For context, Safaricom posted a net income of KSh 69.8 billion for the full year ending March 31, 2025. It declared a dividend of KSh 1.20 per share, amounting to a total payout of KSh 48.08 billion. This means the government’s 35% stake yields over KSh 16.8 billion annually, i.e. reliable, recurring income with no new taxes or debt involved. That is revenue stability we cannot afford to compromise. From a cybersecurity and legal standpoint, divesting such a stake, particularly through a block sale to private or foreign investors, introduces significant risks: - *Digital sovereignty threats*: Safaricom operates critical infrastructure that supports e-citizen services, law enforcement, health messaging, and mobile payment systems like M-Pesa. Transferring control or influence to private or foreign entities exposes the nation to strategic vulnerabilities. - *Data governance and privacy issues*: Safaricom handles sensitive citizen data governed by the Data Protection Act, 2019. A change in control must be preceded by a rigorous Data Protection Impact Assessment and clear legal safeguards to prevent misuse or transborder data compromise. - *Crisis response implications*: Safaricom plays a crucial role in disseminating emergency alerts and coordinating national crisis responses. Weakening government control over this channel could diminish Kenya’s ability to manage emergencies, including public health and security threats. The economic argument for the sale also falls short when examined more closely. Kenya’s fiscal pressure stems largely from recurrent expenditures and unsustainable debt servicing and not a lack of valuable public assets. Cutting discretionary spending on non-priority projects like refurbishments, inflated travel budgets, and excessive administrative costs would send a stronger message of fiscal discipline than selling strategic revenue-generating assets. We must consider alternative approaches including : - *Targeted public IPO*: A carefully structured secondary offering, limited to domestic institutional and retail investors, could raise funds while preserving national control. Clauses such as golden shares or national interest protections could be built in. - *Expenditure reform*: Rather than liquidate profitable assets, a line-by-line review of non-critical government spending should be conducted to reduce wastage. - *Digital revenue expansion*: Safaricom's infrastructure could be used to broaden Kenya’s tax base through digital compliance and informal sector inclusion thus generating revenue without compromising sovereignty. Ultimately, this proposal sets a troubling precedent. We are contemplating the sale of an asset that generates predictable income, supports over 60% of GDP in mobile money transactions, and undergirds our national e-governance agenda, all in the name of short-term budget relief??? This is not just a financial decision; it is a question of long-term national resilience. Stay happy, Mutheu. On Mon, May 26, 2025 at 10:53 AM Victor Kapiyo via KICTANet < [email protected]> wrote:
Dear Listers,
The Kenyan government plans to sell a significant portion of its 35% stake in Safaricom PLC as part of a broader strategy to raise KSh 149 billion (about $1.16 billion) during the 2025/26 financial year to finance the national budget.
Two main approaches are being considered: a secondary Initial Public Offering (IPO) on the Nairobi Securities Exchange, or a block sale targeting high-net-worth investors, potentially attracting regional and international buyers.
Safaricom, whose estimated value is at around KES 280.5 billion, is the largest and most valuable state-owned enterprise capable of generating substantial revenue compared to other parastatals. The government receives healthy dividends of about KES 16 billion annually from the company, which now has operations in neighbouring Ethiopia.
Read more: https://www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-st...
Is this a smart move? What say you?
*Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ====================================================
*“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* _______________________________________________ KICTANet mailing list -- [email protected] To unsubscribe send an email to [email protected] Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Archived at: https://lists.kictanet.or.ke/archives/list/[email protected]/mes...
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Dear Mutheu, Spot on. I fully agree. The challenge for me is not the absence of sense or understanding, but rather the lack of competence or willingness on the part of the responsible, to make the right decisions. Especially when it matters. How can this forum effectively influence the process of policy decision on this proposal, for the sake of all of us and the nation? Rgds, Alloys. On Mon, May 26, 2025 at 12:23 PM A Mutheu via KICTANet < [email protected]> wrote:
Dear Victor,
Thanks for sharing this issue about *Safaricom Stake Sale – Risking Digital Sovereignty for Short-Term Relief.*
While the government’s urgency to raise KSh 149 billion to plug the 2025/26 budget deficit is understandable, the plan to sell part of its 35% stake in Safaricom PLC raises serious concerns, not just fiscal, but legal, cybersecurity, and crisis management-related.
Safaricom is far more than a profitable parastatal. It is one of Kenya’s most strategically significant digital infrastructure assets. Its reach extends deep into government services, mobile money platforms, national emergency communications, and citizen data systems. It is, in essence, the backbone of Kenya’s evolving digital state.
For context, Safaricom posted a net income of KSh 69.8 billion for the full year ending March 31, 2025. It declared a dividend of KSh 1.20 per share, amounting to a total payout of KSh 48.08 billion. This means the government’s 35% stake yields over KSh 16.8 billion annually, i.e. reliable, recurring income with no new taxes or debt involved. That is revenue stability we cannot afford to compromise.
From a cybersecurity and legal standpoint, divesting such a stake, particularly through a block sale to private or foreign investors, introduces significant risks:
-
*Digital sovereignty threats*: Safaricom operates critical infrastructure that supports e-citizen services, law enforcement, health messaging, and mobile payment systems like M-Pesa. Transferring control or influence to private or foreign entities exposes the nation to strategic vulnerabilities. -
*Data governance and privacy issues*: Safaricom handles sensitive citizen data governed by the Data Protection Act, 2019. A change in control must be preceded by a rigorous Data Protection Impact Assessment and clear legal safeguards to prevent misuse or transborder data compromise. -
*Crisis response implications*: Safaricom plays a crucial role in disseminating emergency alerts and coordinating national crisis responses. Weakening government control over this channel could diminish Kenya’s ability to manage emergencies, including public health and security threats.
The economic argument for the sale also falls short when examined more closely. Kenya’s fiscal pressure stems largely from recurrent expenditures and unsustainable debt servicing and not a lack of valuable public assets. Cutting discretionary spending on non-priority projects like refurbishments, inflated travel budgets, and excessive administrative costs would send a stronger message of fiscal discipline than selling strategic revenue-generating assets.
We must consider alternative approaches including :
-
*Targeted public IPO*: A carefully structured secondary offering, limited to domestic institutional and retail investors, could raise funds while preserving national control. Clauses such as golden shares or national interest protections could be built in. -
*Expenditure reform*: Rather than liquidate profitable assets, a line-by-line review of non-critical government spending should be conducted to reduce wastage. -
*Digital revenue expansion*: Safaricom's infrastructure could be used to broaden Kenya’s tax base through digital compliance and informal sector inclusion thus generating revenue without compromising sovereignty.
Ultimately, this proposal sets a troubling precedent. We are contemplating the sale of an asset that generates predictable income, supports over 60% of GDP in mobile money transactions, and undergirds our national e-governance agenda, all in the name of short-term budget relief???
This is not just a financial decision; it is a question of long-term national resilience.
Stay happy,
Mutheu.
On Mon, May 26, 2025 at 10:53 AM Victor Kapiyo via KICTANet < [email protected]> wrote:
Dear Listers,
The Kenyan government plans to sell a significant portion of its 35% stake in Safaricom PLC as part of a broader strategy to raise KSh 149 billion (about $1.16 billion) during the 2025/26 financial year to finance the national budget.
Two main approaches are being considered: a secondary Initial Public Offering (IPO) on the Nairobi Securities Exchange, or a block sale targeting high-net-worth investors, potentially attracting regional and international buyers.
Safaricom, whose estimated value is at around KES 280.5 billion, is the largest and most valuable state-owned enterprise capable of generating substantial revenue compared to other parastatals. The government receives healthy dividends of about KES 16 billion annually from the company, which now has operations in neighbouring Ethiopia.
Read more: https://www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-st...
Is this a smart move? What say you?
*Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ====================================================
*“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* _______________________________________________ KICTANet mailing list -- [email protected] To unsubscribe send an email to [email protected] Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Archived at: https://lists.kictanet.or.ke/archives/list/[email protected]/mes...
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
PRIVACY POLICY: See https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
PRIVACY POLICY: See https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Good observations, I couldn't agree more. You don't just slaughter your most productive cow, even if there's a funeral. *Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ==================================================== *“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* On Mon, 26 May 2025, 12:23 A Mutheu, <[email protected]> wrote:
Dear Victor,
Thanks for sharing this issue about *Safaricom Stake Sale – Risking Digital Sovereignty for Short-Term Relief.*
While the government’s urgency to raise KSh 149 billion to plug the 2025/26 budget deficit is understandable, the plan to sell part of its 35% stake in Safaricom PLC raises serious concerns, not just fiscal, but legal, cybersecurity, and crisis management-related.
Safaricom is far more than a profitable parastatal. It is one of Kenya’s most strategically significant digital infrastructure assets. Its reach extends deep into government services, mobile money platforms, national emergency communications, and citizen data systems. It is, in essence, the backbone of Kenya’s evolving digital state.
For context, Safaricom posted a net income of KSh 69.8 billion for the full year ending March 31, 2025. It declared a dividend of KSh 1.20 per share, amounting to a total payout of KSh 48.08 billion. This means the government’s 35% stake yields over KSh 16.8 billion annually, i.e. reliable, recurring income with no new taxes or debt involved. That is revenue stability we cannot afford to compromise.
From a cybersecurity and legal standpoint, divesting such a stake, particularly through a block sale to private or foreign investors, introduces significant risks:
-
*Digital sovereignty threats*: Safaricom operates critical infrastructure that supports e-citizen services, law enforcement, health messaging, and mobile payment systems like M-Pesa. Transferring control or influence to private or foreign entities exposes the nation to strategic vulnerabilities. -
*Data governance and privacy issues*: Safaricom handles sensitive citizen data governed by the Data Protection Act, 2019. A change in control must be preceded by a rigorous Data Protection Impact Assessment and clear legal safeguards to prevent misuse or transborder data compromise. -
*Crisis response implications*: Safaricom plays a crucial role in disseminating emergency alerts and coordinating national crisis responses. Weakening government control over this channel could diminish Kenya’s ability to manage emergencies, including public health and security threats.
The economic argument for the sale also falls short when examined more closely. Kenya’s fiscal pressure stems largely from recurrent expenditures and unsustainable debt servicing and not a lack of valuable public assets. Cutting discretionary spending on non-priority projects like refurbishments, inflated travel budgets, and excessive administrative costs would send a stronger message of fiscal discipline than selling strategic revenue-generating assets.
We must consider alternative approaches including :
-
*Targeted public IPO*: A carefully structured secondary offering, limited to domestic institutional and retail investors, could raise funds while preserving national control. Clauses such as golden shares or national interest protections could be built in. -
*Expenditure reform*: Rather than liquidate profitable assets, a line-by-line review of non-critical government spending should be conducted to reduce wastage. -
*Digital revenue expansion*: Safaricom's infrastructure could be used to broaden Kenya’s tax base through digital compliance and informal sector inclusion thus generating revenue without compromising sovereignty.
Ultimately, this proposal sets a troubling precedent. We are contemplating the sale of an asset that generates predictable income, supports over 60% of GDP in mobile money transactions, and undergirds our national e-governance agenda, all in the name of short-term budget relief???
This is not just a financial decision; it is a question of long-term national resilience.
Stay happy,
Mutheu.
On Mon, May 26, 2025 at 10:53 AM Victor Kapiyo via KICTANet < [email protected]> wrote:
Dear Listers,
The Kenyan government plans to sell a significant portion of its 35% stake in Safaricom PLC as part of a broader strategy to raise KSh 149 billion (about $1.16 billion) during the 2025/26 financial year to finance the national budget.
Two main approaches are being considered: a secondary Initial Public Offering (IPO) on the Nairobi Securities Exchange, or a block sale targeting high-net-worth investors, potentially attracting regional and international buyers.
Safaricom, whose estimated value is at around KES 280.5 billion, is the largest and most valuable state-owned enterprise capable of generating substantial revenue compared to other parastatals. The government receives healthy dividends of about KES 16 billion annually from the company, which now has operations in neighbouring Ethiopia.
Read more: https://www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-st...
Is this a smart move? What say you?
*Victor Kapiyo* Partner | *Lawmark Partners LLP* *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke <http://www.lawmark.co.ke/> * ====================================================
*“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* _______________________________________________ KICTANet mailing list -- [email protected] To unsubscribe send an email to [email protected] Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Archived at: https://lists.kictanet.or.ke/archives/list/[email protected]/mes...
Mailing List Posts Online: https://posts.kictanet.or.ke/
Twitter: https://twitter.com/KICTANet/ Facebook: https://www.facebook.com/KICTANet/ Instagram: https://www.instagram.com/KICTANet/ LinkedIn: https://www.linkedin.com/company/kictanet/ YouTube: https://www.youtube.com/channel/UCbcLVjnPtTGBEeYLGUb2Yow/ WhatsApp Channel: https://whatsapp.com/channel/0029VaQsX4w6mYPIctLsGh1K
KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
PRIVACY POLICY: See https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
participants (3)
-
A Mutheu -
Alloys Siaya -
Victor Kapiyo