Govt to Sell Stock in Safaricom, Kenya Airways and Kenya Pipeline Company

The government has unveiled plans to raise money for major development projects by selling shares in over 200 state-owned companies, instead of increasing taxes or borrowing more. The move targets firms such as Safaricom and Kenya Airways and is expected to support infrastructure growth across the country.

This plan falls under the Privatization Act, 2025, with the first phase focusing on 45 government-linked entities. Money raised from the sale of shares will be channelled into the newly formed National Infrastructure Fund and the Sovereign Wealth Fund. These funds are expected to finance key projects including road construction, energy expansion, water supply improvements, and airport modernisation.

Some of the biggest companies have already been affected. The government has reduced its stake in Safaricom after selling 15 per cent to Vodacom Group, leaving the State with a 20 per cent shareholding. Kenya Airways is also lined up for a partial sale as part of the programme. Meanwhile, Kenya Pipeline Company (KPC) plans to offload up to 65 per cent of its shares through an initial public offering (IPO) by March 2026.

Other organisations listed in the first phase include Kenyatta International Convention Centre (KICC), Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Rivatex East Africa, New Kenya Co-operative Creameries (NKCC), Kenya Seed Company, and East African Portland Cement.

According to government officials, the goal is to make state-owned companies more efficient, attract both local and foreign investors, and strengthen Kenya’s capital markets. However, the plan has sparked debate, with critics warning of possible lack of transparency, undervaluation of public assets, and reduced parliamentary oversight under the new law. Some fear that poorly managed sales could put key national assets at risk.

As of January 2026, the government says the privatization process will be rolled out in stages, beginning with the 45 firms in the first phase. The wider objective remains to fund development projects and boost public investment without adding pressure to Kenya’s growing debt.