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Kenya Discussion / Re: Ndindi Nyoro goes ballistic over GoK Safaricom sale
« Last post by gout on December 05, 2025, 04:12:05 PM »Quote
The government has given up Sh15.5 billion worth of future dividends from Safaricom in a rush to receive an upfront payment of Sh40.2 billion on the 20 percent stake it will retain in the company after selling part of its shares to South Africa's Vodacom Group.https://www.businessdailyafrica.com/bd/economy/treasury-gives-up-sh15bn-in-race-for-safaricom-dividends-5287112
It has now emerged that the National Treasury has sold the right to receive future dividends of Sh55.7 billion to Vodacom at the price of Sh40.2 billion, effectively giving the latter a discount of 27.8 percent.
The accelerated dividend payout to the government is part of the deal with the multinational, which will also buy a 15 percent stake in Safaricom from the Treasury for Sh204.3 billion or Sh34 per share through its Kenyan investment vehicle known as Vodafone Kenya.
The dividend discount has been disclosed by Vodacom to its shareholders via the official disclosures bulletin of the Johannesburg Stock Exchange (JSE), but the Sh55.7 billion amount was omitted by the Treasury and Safaricom in notices to Kenyan investors.
"Vodafone Kenya has agreed to buy the right to receive future Safaricom dividends amounting to Sh55.7 billion (7.4 billion rands), that would have accrued to the government of Kenya on its remaining shares in Safaricom for an upfront payment of Sh40.2 billion (5.3 billion rands)," said Vodacom in its disclosure.
The government's stake in Safaricom will drop from the current 35 percent to 20 percent, with the Treasury leveraging future dividend entitlement on the residual stake to get more cash in the transaction.
