Government Plans to sell its stake in Safaricom Plc

>From your post:

If Safaricom estimated value is approx KES 280.5B:
GoK 35% stake would be KES 98.18B,
Giving annual dividends of KES 16B, which is 16.3% return.

Under the current economic situation, I think you have to be a mad man to
offload such asset.

But I don’t know the whole story.

I just hope, if the responsible people in government want to go ahead with
this, there is justifiable merit and a clear positive outcome for the
country, and that it will be communicated transparently and diligently.

Rgds,
Alloys

On Mon, May 26, 2025 at 10:55 AM Victor Kapiyo via KICTANet <
[email protected]> wrote:

> Dear Listers,
>
> The Kenyan government plans to sell a significant portion of its 35% stake
> in Safaricom PLC as part of a broader strategy to raise KSh 149 billion
> (about $1.16 billion) during the 2025/26 financial year to finance the
> national budget.
>
> Two main approaches are being considered: a secondary Initial Public
> Offering (IPO) on the Nairobi Securities Exchange, or a block sale
> targeting high-net-worth investors, potentially attracting regional and
> international buyers.
>
> Safaricom, whose estimated value is at around KES 280.5 billion, is the
> largest and most valuable state-owned enterprise capable of generating
> substantial revenue compared to other parastatals. The government receives
> healthy dividends of about KES 16 billion annually from the company, which
> now has operations in neighbouring Ethiopia.
>
> Read more:
> www.businessdailyafrica.com/bd/economy/treasury-to-sell-safaricom-stake-in-sh149bn-plan-5056992
>
>
> Is this a smart move? What say you?
>
>
> *Victor Kapiyo*
> Partner | *Lawmark Partners LLP*
> *Nine Planet Apartments, Nairobi | **Web: www.lawmark.co.ke
> <www.lawmark.co.ke/> *
> ====================================================
>
> *“Your attitude, not your aptitude, will determine your altitude” Zig
> Ziglar*
>