News and Analysis
December 5, 2025
Hello and welcome to the Money News Roundup Newsletter, where we are covering the deal by the government to sell its stake at Safaricom. We also cover how UAE is emerging as the leading export destination for Kenya.
The State plans to sell a 15% stake in Safaricom to South Africa’s Vodacom Group in a deal expected to raise Ksh244.5 billion, offering relief to the exchequer as it seeks to reduce reliance on debt to fund the budget deficit.
As reported in the Business Daily, the proceeds include Ksh204.3 billion from the sale of six billion shares at Ksh34 each, plus an advance dividend payment of Ksh40.2 billion. The sale price is notably higher than the Ksh169.4 billion the stake would have fetched at Safaricom’s market price as of Wednesday. The advance dividend works out to Ksh6.69 per share, ahead of an interim dividend expected early next year.
Sources say the Safaricom transaction is part of a broader government plan to dilute shareholdings in select enterprises to raise short-term budget support. Last month, Vodacom confirmed its interest in acquiring additional Safaricom shares once the government made a decision to sell, citing its long-standing partnership.
Vodacom, together with its parent Vodafone Group, currently owns 40% of Safaricom, while the government holds 35%. After the sale, the State’s stake would drop to 20%. The deal would surpass Treasury’s Ksh150 billion privatisation target for the current fiscal year.
The move follows the enactment of the Privatisation Act, 2025, and comes as the Treasury grapples with funding a projected Ksh901 billion budget deficit for the 2025/26 fiscal year, amid underperforming revenue collection.
This is the first time that a private company will have a majority stake in the Telco (at 54%). In 2008, the government had 60% ownership and sold 25% of its stake through an Initial Public Offering (IPO), where it raised Ksh51.75 billion.
What it means: Once the deal is completed, Vodacom will have control of the company and influence key decisions, such as individuals who sit on the board. This means that Vodacom can largely direct the strategy, operations, and key decisions of Safaricom through its voting power at shareholder meetings and control over the board of directors
Read more: TSC Announces 9,159 Job Vacancies; How to Apply
The United Arab Emirates emerged as Kenya’s fastest-growing export market in the first nine months of the year, driven by a surge in gold exports. Exports to the UAE rose 26.3% to Ksh42.76 billion between January and September, up from Ksh33.86 billion a year earlier.
The growth coincided with higher gold shipments, with Kenya exporting 1,217.79 kilogrammes of gold worth Ksh8.19 billion in the three months to June, far exceeding the historical annual average of Ksh1.81 billion.
Mining Principal Secretary Harry Kimtai attributed the increase to global price gains and reforms in the mining sector.
Uganda remained Kenya’s largest export destination, recording a 7.38% rise to Ksh97.40 billion, followed by the US at Ksh57.52 billion. Tea export earnings declined to Ksh134.94 billion, while coffee and cut flower exports posted strong growth. Read more.
Learners set to join senior school next month will face a shortage of 58,590 specialised teachers under the competency-based education (CBE) system, with the Science, Technology, Engineering and Mathematics (STEM) pathway most affected.
As covered by Nation, Teachers Service Commission (TSC) Director of Quality Assurance Reuben Nthamburi said the shortfall is driven by the new senior school pathways.
He noted that about 60% of learners, or 677,144 students, will join the STEM pathway, creating a need for 35,111 teachers. Social Sciences will require 14,630 teachers, while Arts and Sports need 8,778, bringing the total gap to about 58,519 teachers.
TSC has urged universities and teacher training institutions to align programmes with market needs, particularly in Arts and Sports, where there are acute shortages in music, dance, theatre, film and creative arts. In STEM, gaps are most pronounced in marine and fisheries, aviation, electricity and construction-related subjects.
More than 30,000 secondary and special needs teachers are currently being retrained ahead of the transition of 1.1 million Grade 9 learners to senior school.
As in the Kenya Wallstreet, East African Portland Cement (EAPC) share value hit Ksh100, the highest level since May 9, 2014, extending a powerful rally sparked by the Kalahari–NSSF stake deal.
The stock is up 65% in a week, 2,142% from the July 2024 low and 226% year-to-date, marking one of the strongest recoveries at the NSE. Uchumi also surged to Ksh1.34, its highest since September 2018, up 272% in a month and 688.24% year-to-date.
The rally at Portland follows Capital Markets Authority approval allowing Kalahari Cement to acquire Holcim’s 29.2% stake in EAPC without a mandatory takeover offer, lifting investor sentiment. The deal gives entities linked to Tanzanian industrialist Ebrahim Munif a combined 41.7% control of EAPC.
Also Read: Top 10 Most Valuable Companies in Kenya Per NSE
As in the Business Daily, Kenya risks missing its medium-term fiscal consolidation targets due to its inability to cut fixed recurrent expenditure, limiting funds available for job-creating development projects amid weak revenue growth.
In its latest Kenya Economic Update, the World Bank said widening fiscal deficits, revenue underperformance, rising pending bills and heavy reliance on domestic borrowing have weakened the country’s fiscal position.
In the year to June 2025, the fiscal deficit rose to 5.9% of GDP, overshooting the revised target of 4.3%. The Bank noted that, over the past two years, deficits have exceeded projections by an average of 1.3% of GDP. Rigid expenditures, including wages and debt servicing, account for 56.4% of total spending and 75.8% of revenue.
Unable to cut recurrent costs, the government has reduced development spending, which fell to 3.4% of GDP in 2024/25. Meanwhile, borrowing targets rose from an initial Ksh597 billion to Ksh1.034 trillion after budget revisions.
The Competition Authority of Kenya (CAK) has fined Directline Assurance Company Limited Ksh85 million for abusing its bargaining power over two Nairobi-based motor vehicle repair firms. The penalty followed complaints by Kilele Motors Limited and Midland Autocare Limited, which accused the insurer of delaying payments and pushing them into financial distress.
As detailed by the Capital, CAK said Directline contracted the garages in 2023 and 2024 to repair vehicles for insured clients but failed to settle invoices on time. By the end of the investigation, Directline owed Midland Ksh4.7 million and Kilele Ksh1.3 million, despite partial payments made during the probe.
CAK Director General David Kemei said the penalty reflects the seriousness of the offence. The Authority noted that Directline ignored at least 19 payment reminders, amounting to abuse of buyer power.
Directline has also been ordered to clear all arrears, amend contracts to include interest on late payments, and comply with the Competition Act.
As reported by Nairobileo, the Higher Education Loans Board (HELB) has assured borrowers that it fully complies with the in duplum rule, following a 2021 High Court ruling that capped loan interest and penalties at double the principal amount.
In a statement issued on December 3, HELB said all loan accounts are managed in line with the judgment in Mugure & 2 Others v HELB (2021).
The ruling barred HELB from charging interest and penalties beyond 100% of the original loan, extending protections previously applied only to banks.
The Court found that excessive penalties violated borrowers’ constitutional rights to equality and consumer protection.
HELB services more than 380,000 defaulters who collectively owe about Ksh42 billion. Chief Executive Geoffrey Monari has warned that sustained repayments are critical to keeping the revolving fund operational. HELB has listed over 120,000 defaulters with CRBs and is pursuing stronger recovery measures, while maintaining fair and transparent loan management.
The in duplum rule caps the total interest on a non-performing loan at the original principal amount.
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
.jpg)
%20(1).jpg)
