Nairobi — The government has offloaded a 15 per cent stake in Safaricom, unlocking Sh244.5 billion in proceeds as part of its plan to finance major infrastructure projects.

Under the transaction, Vodacom Group will also acquire Vodafone Kenya's entire shareholding, consolidating its control and raising its total stake in Safaricom to 55 per cent.

The government will retain a 20 per cent strategic stake, while the remaining 25 per cent remains publicly held.

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Treasury Cabinet Secretary John Mbadi said the divestment demonstrates strong investor confidence in the telco and aligns with the state's broader fiscal reforms.

"This partial 15 per cent divestiture will generate approximately Sh244.5 billion in aggregate proceeds. Notably, the transaction has earned a 23.6 per cent premium on the six-month volume-weighted average price," Mbadi said.

"This is the first step in the government's vision to allocate resources to critical infrastructure priorities, including energy, roads, water, airports, and more."

The sale reduces the government's stake in Kenya's largest telecommunications company from about 35 percent.

Proceeds from the divestment will support the National Infrastructure Fund and the Sovereign Wealth Fund, helping finance key public projects nationwide.

Additionally, Vodafone Kenya has agreed to pay the government an upfront Sh40.2 billion in exchange for rights to future dividends on the state's remaining 20 per cent stake.

Founded in 1997 and partially privatised in 2008, Safaricom remains a strategic national asset. Its M-Pesa mobile money platform continues to dominate Kenya's digital financial services market, serving millions across the country.

The partial divestment comes amid rising investor interest in Safaricom, buoyed by consistent revenue growth and its market-leading position in mobile telephony and digital services.