Government proceeding with Safaricom sale

11 Sep 2006

Kenya’s government says it expects to have sold a further 9% stake in mobile operator Safaricom before April 2007. The government has a 60% interest in Safaricom which is held via the state-owned fixed line operator Telkom Kenya. It is selling off a 9% share in order to raise funds to help with Telkom’s restructuring. Nairobi-based newspaper The Nation reports that the government plans to split Telkom and Safaricom and then launch a privatisation of the country’s monopoly wireline provider. The remaining 40% of Safaricom is currently held by Vodafone, and the UK group has pre-emptive rights over any shares offered for sale. Safaricom had almost four million subscribers and two-thirds of Kenya’s mobile market at the end of March, according to TeleGeography’s GlobalComms database.

Kenya, Safaricom, Telkom Kenya