Kenya: Govt to Receive Sh200bn Safaricom Sale Proceeds Tomorrow

Nairobi — National Treasury Cabinet Secretary John Mbadi says the government expects to receive more than Sh200 billion on Friday from the sale of its 15 percent stake in Safaricom to South Africa's Vodacom.

Speaking on Citizen TV, Mbadi said the proceeds will be deposited into the National Infrastructure Fund (NIF), which is held at the Central Bank of Kenya.

"I am very confident that on Friday we'll have the money in our accounts," Mbadi said.

The transaction follows a Court of Appeal decision earlier this week lifting conservatory orders that had blocked the sale, allowing the government to complete the disposal of part of its stake in the telecommunications firm.

Following the transaction, Vodafone Kenya Limited, a subsidiary of Vodacom, increased its shareholding in Safaricom to 55 percent, while the government's stake dropped to 20 percent from 35 percent. Public investors continue to hold the remaining 25 percent.

Mbadi said the NIF already holds about Sh103 billion from the Kenya Pipeline Company initial public offering (IPO).

The government has said the Safaricom sale proceeds will be used to capitalize the NIF, which is expected to finance major infrastructure projects across the country.