NAIROBI, Kenya, Jan 22 – The Central Bank of Kenya (CBK) has projected that the proposed partial sale of the government’s stake in Safaricom PLC to Vodacom will raise Kenya’s foreign exchange reserves to Sh1.84 trillion by 2026.
Appearing before the National Assembly’s Departmental Committee on Finance and National Planning, CBK Governor Kamau Thugge said the transaction would increase the country’s import cover to 6.2 months from the current 5.3 months (Sh1.6 trillion), reinforcing macroeconomic stability.
He added that the inflows would push reserves above the statutory minimum of four months as well as the East African Community convergence threshold.
“The increase in reserves will help support a stable exchange rate, which in turn will help contain imported inflation and support the Central Bank’s price stability mandate,” he told MPs.
CBK added that the additional foreign currency inflows would reduce the government’s reliance on domestic borrowing, helping sustain lower interest rates.
Under the proposal, the government’s shareholding in Safaricom would fall from 35 percent to 20 percent, while the Vodafone-Vodacom consortium would increase its stake to 55 percent.
Kenya is expected to earn more than Sh240 billion from the sale of its 15 percent stake in the telco, in addition to Sh39.86 billion in upfront payments tied to future dividends.
However, the proposal has drawn criticism from the Consumer Federation of Kenya (COFEK), which has petitioned Parliament to block the sale, citing concerns over foreign control of a strategic national asset, particularly the M-Pesa platform.
Treasury Cabinet Secretary John Mbadi dismissed the concerns, saying national interests are protected through regulation rather than ownership.
Safaricom Chief Executive Officer Peter Ndegwa also told lawmakers that the company would retain its Kenyan identity, brand and operational independence despite the changes in shareholding.
