Kenya Eyes Safaricom Stake Sale as Debt Pressure Mounts

Kenya is preparing to sell part of its 34.9% stake in Safaricom, its most valuable corporate asset, to raise $1.1 billion and ease mounting debt pressures without imposing more taxes. The sale, expected before the end of the 2025/26 fiscal year, would be the government’s largest divestiture in almost two decades and could attract global investors eyeing Africa’s telecom boom. With rising debt servicing costs—set to top $7.7 billion this year—and limited financing options, the government sees privatization as a necessary lifeline amid economic strain and public resistance to further taxation. Safaricom’s profitability, driven by its mobile money platform M-Pesa, makes it a prime candidate to initiate the government’s privatization strategy.

Techcabal