Kenya to Reduce Stake in Safaricom Amid Soaring Debt, Signaling Shift for Telecom and Tech Sectors
- Kenya's government aims to raise KSh149 billion ($1.16 billion) by selling stakes in state-owned enterprises, including Safaricom.
- The government has faced mounting debt servicing costs, paying approximately $5.5 billion in interest from July 2023 to February 2024.
- Safaricom reported an 11% rise in net earnings in 2024, reaching $540 million, bolstered by its mobile money platform, M-PESA.
The government's decision to divest from Safaricom reflects a strategic approach to managing debt while potentially unlocking new opportunities for private investment and innovation in Kenya's telecom sector. However, it is crucial to monitor how this shift affects regulatory dynamics and market confidence in the long term.
