Proceeds from the government’s sale of a 15 per cent stake in Safaricom to South Africa’s Vodacom are yet to hit state coffers, a fortnight after the landmark transaction was concluded.
However, Central Bank of Kenya (CBK) Governor Kamau Thugge said the Sh204 billion payment is expected to be received shortly and will significantly boost the country’s foreign exchange reserves.
Speaking during the 23rd East African Banking School (EABS) Conference in Mombasa on Wednesday, Thugge said the funds were “just about to” be reflected in the country’s reserve position.
“We have seen our current account widen more than we had anticipated but luckily we have enough financial inflows including foreign direct investments. We’ve seen monies from Safaricom, it’s yet to hit our reserve position, but I think it’s just about to and that will take us to $16 billion, almost seven months of import cover,” he said.
The government sold 6,009,814,200 ordinary shares in Safaricom to Vodacom at Sh34 per share to raise Sh204 billion after the Court of Appeal cleared the transaction.
The acquisition valued at $2.1 billion (Sh272 billion), formed part of Vodacom’s acquisition of an additional 20 per cent stake in Safaricom, increasing its shareholding to 55 per cent and making it the telecommunications firm’s majority shareholder.
While Vodacom acquired the additional 20 per cent stake, 15 per cent was purchased from the Government of Kenya and the remaining five per cent from Vodafone Group Plc.
The government retained a 20 per cent stake in the Nairobi Securities Exchange-listed company.
The transaction, first announced in December 2025, is one of the largest corporate deals in Kenya’s history.
National Treasury Cabinet Secretary John Mbadi had earlier said the government’s share of the proceeds would be deposited into the National Infrastructure Fund to finance strategic projects, including roads, energy systems, water infrastructure and airports.
He maintained that the transaction was conducted lawfully, transparently and with Parliament’s approval.
The sale helped bolster Kenya’s foreign reserves by $954 million (Sh123 billion) to $14.13 billion (Sh1.83 trillion) as of July 10, driven by strong external inflows.
Thugge also attributed the increase to World Bank’s recent Development Policy Operation (DPO VII), a $750 million (Sh96.98 billion) budget support loan, as well as proceeds from the Kenya Pipeline Company divestiture.
The CBK governor said another major transaction—the $855 million (Sh110.55 billion) acquisition of a 66 per cent stake in NCBA Group by South Africa’s Nedbank—would provide an additional foreign exchange buffer once completed.
“So, we still expect a very strong balance of payments position notwithstanding what’s happening in the Middle East and therefore we expect the exchange rate to remain relatively stable and for us to have reserve cover anywhere between 5.5 months and six months of imports. I think that is sufficient for us to be able to address any of the domestic shocks that may come towards the end of the year or if the Middle East crisis escalates beyond where we are now,” he said.
According to Thugge, the stronger external position has helped Kenya maintain a stable exchange rate of about Sh130 against the US dollar for nearly two years, despite global economic uncertainties.
The five-day conference, being held at Diamonds Leisure Beach and Golf Resort, concludes on Friday, July 17.
It has brought together banking executives, regulators and financial professionals from across East Africa under the theme, Navigating Credit Risk in the Digital Transformation Era
