Safaricom Share Sale Gains CBK Endorsement

The Central Bank of Kenya (CBK) has publicly endorsed the government’s proposed sale of a 15 percent stake in Safaricom to South Africa’s Vodacom Group, affirming that the transaction is unlikely to undermine financial stability or the integrity of the national payment system. Governor Kamau Thugge told a parliamentary committee that, while formal approval is still being assessed, the $1.6 billion‑plus deal would maintain safeguards around Safaricom’s M‑Pesa platform, which holds substantial customer funds, and could bolster foreign exchange reserves, ease domestic borrowing pressures and support lower interest rates.

The agreement, signed by the National Treasury at Sh34 per share and subject to regulatory clearances, would increase Vodacom’s direct holding to a controlling 55 percent once combined with existing stakes, reducing the government’s ownership to about 20 percent and leaving public investors with roughly 25 percent, a move seen as deepening private capital participation in the telecommunications sector. Critics of the sale have raised concerns about valuation and national interests, but CBK’s support underscores confidence in the transaction’s financial prudence and regulatory compliance, even as oversight bodies continue their review, and as the broader telecoms market watches for implications on sector governance and investment flows.