2025: A pivotal year in Kenya’s privatization drive
NAIROBI, Kenya, Jan 1 - In 2025, Kenya’s government undertook one of the most significant shifts in economic policy in years, offloading stakes in major Kenya breaking news | Kenya news today |..
✨ Key Highlights
In 2025, Kenya initiated a major economic policy shift through privatization, primarily by selling a significant stake in Safaricom PLC to raise capital for infrastructure and reduce debt, with broader plans to divest from other state-linked enterprises.
- On December 4, 2025, the government sold 15 percent of its stake in Safaricom PLC, raising approximately Sh244.5 billion (about $1.6 billion).
- Vodafone Kenya/Vodacom Group increased its stake in Safaricom to 55 percent, while the state's direct shareholding decreased to about 20 percent.
- Proceeds from the Safaricom sale were earmarked as seed capital for the newly established National Infrastructure Fund (NIF) and Sovereign Wealth Fund.
- The Cabinet also approved reinstating the Kenya Pipeline Company (KPC) into the privatization program in July 2025.
- President William Ruto consistently framed privatization as essential for fiscal sustainability and structural reform, aiming to attract investment and reduce reliance on external debt.
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Kenya Implements Economic Policies Including Privatization, a New Infrastructure Fund, and Licensing of Digital Lenders - January 2026
In 2025, Kenya initiated a major economic policy shift through privatization, primarily by selling a significant stake in Safaricom PLC to raise capital for infrastructure and reduce debt. Alongside this, President William Ruto announced the establishment of the National Infrastructure Fund as a cornerstone of Kenya's economic development. This fund aims to accelerate the country's transformation towards a first-world economy by 2026. Separately, the Central Bank of Kenya (CBK) has licensed an additional 42 Digital Credit Providers (DCPs). This action brings the total number of regulated digital lenders in the country to 195 as of January 1, 2024. The ongoing regulation aims to curb predatory practices and protect consumers in the digital lending sector.
