The Kenyan government is dumping a 15 percent chunk of Safaricom to Vodacom Group for 244.5 billion shillings, which drops the state from owning 35 percent down to 20 percent. Vodacom is also grabbing another 5 percent from Vodafone International Holdings to hit 55 percent total ownership and finally take majority control of the telco. Treasury CS John Mbadi says the cash will kickstart the National Infrastructure Fund.
Vodafone Kenya is throwing in an extra 40.1 billion upfront to snag future dividend payments worth 55.7 billion that would have gone to the government. Mbadi claims the remaining 20 percent stake still gives Kenya enough juice to steer decisions at Safaricom, and he insists data protection plus cybersecurity rules stay locked down under local regulations.
The whole deal needs approval from regulators and Parliament before it goes through. Kenya is trying to raise 600 billion total for roads, dams, and energy projects while cutting back on debt and tax hikes.
Vodafone Kenya is throwing in an extra 40.1 billion upfront to snag future dividend payments worth 55.7 billion that would have gone to the government. Mbadi claims the remaining 20 percent stake still gives Kenya enough juice to steer decisions at Safaricom, and he insists data protection plus cybersecurity rules stay locked down under local regulations.
The whole deal needs approval from regulators and Parliament before it goes through. Kenya is trying to raise 600 billion total for roads, dams, and energy projects while cutting back on debt and tax hikes.
