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Kenyan government to offload more Safaricom shares

The Kenyan government is reportedly preparing to reduce its ownership stake in Safaricom, the country’s largest telecommunications company. This move follows previous instances where the government has offloaded shares in the highly profitable firm.

Sources indicate that the government, through the National Treasury, which holds a significant percentage of Safaricom shares, is looking to sell a substantial portion of its remaining stake. The exact size of the planned sale has not been officially disclosed, but it is expected to be a notable divestment.

The decision to sell more Safaricom shares is understood to be part of the government’s broader strategy. This strategy includes generating much-needed revenue for the national budget and reducing the state’s direct involvement in commercial enterprises. Such privatisation efforts are often aimed at improving efficiency and fostering growth in the private sector.

Selling a stake in a company as large and successful as Safaricom is likely to attract significant attention from both local and international investors. The sale could potentially be executed through various means, such as offering the shares on the Nairobi Securities Exchange (NSE) or seeking a strategic buyer. The method chosen could influence the stock market dynamics and the overall success of the divestment.

This potential sale is seen by some market analysts as a positive step that could inject liquidity into the Nairobi Securities Exchange and potentially attract more foreign investors to the Kenyan market. However, the impact on the Safaricom share price will depend on factors such as the volume of shares offered and the demand from buyers.

The government’s plan signifies a continued shift in its economic approach, focusing on raising capital and allowing market forces to play a greater role in key sectors. This potential sale of Safaricom shares is a significant development for both the company and the broader Kenyan economic landscape.

Source: https://www.datacenterdynamics.com/en/news/kenyan-govt-to-sell-more-shares-in-safaricom/

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