Vodacom Now Wants to Buy Govt Shares in Safaricom After Rejecting Split Plans

Hello and welcome to the Money News Roundup Newsletter, where we are covering Vodacom’s plans to buy government shares at Safaricom. We also cover 21 roads earmarked for dualing.

Vodacom Now Wants to Buy Govt Shares in Safaricom After Rejecting Split Plans

Vodacom Group is in discussions with the government about acquiring part of its stake in Safaricom.

According to sources familiar with the talks, Vodacom already holds a 39.93% share in Safaricom and is considering increasing its stake, though no final decision has been made. 

As reported by Bloomberg, Safaricom, valued at Ksh1.19 trillion, is Kenya’s largest telecom operator with nearly two-thirds of the country’s mobile subscribers.

A potential sale would help the government raise revenue as it manages rising debt and budget pressures.

Vodacom last expanded its stake in 2017 through an all-share deal with Vodafone.

Initially, the government had planned to split the company in a bid to increase its value ahead of the sale of its shares. However, Vocadom objected to the move to separate M-Pesa from its telecom operations.

Treasury officials had suggested breaking Safaricom into three units -a telecommunications firm, a tower operator, and M-Pesa. 

The government is aiming to raise Ksh140 billion through the sale of the safaricom shares.

James Gichuru Road Among 21 Roads to Be Dualled [LIST]

President William Ruto has announced plans to dual 21 major highways over the next 10 years. 

The roads earmarked for dualing include the Rironi–Naivasha–Nakuru–Mau Summit road, Rironi–Maai Mahiu–Naivasha road, Muthaiga–Kiambu–Ndumberi road, Machakos Junction–Mariakani road, Mau Summit–Kericho–Kisumu road, Kisumu–Busia road, Mau Summit–Eldoret–Malaba road, Athi River–Namanga road, and Karatina–Nanyuki–Isiolo road.

Also set for dualing are Makutano–Embu–Meru–Maua road, Mtwapa–Malindi road, Mombasa–Lunga Lunga road, Kericho–Kisii–Migori–Isebania road, Nakuru–Nyahururu–Karatina road, Kisii–Oyugis–Ahero road, the Northern Bypass, James Gichuru Road, Bomas–Karen–Ngong road, Bomas–Ongata Rongai–Kiserian road, and the Ngong–Isinya road.

Speaking during the State of the Nation address, the President also confirmed that construction of the Standard Gauge Railway (SGR) extension from Naivasha to Kisumu, and eventually to Malaba, will begin in January 2026.

As reported by the Nation, Dualing of the Rironi–Naivasha–Nakuru–Mau Summit and Rironi–Maai Mahiu–Naivasha roads will be launched next week.

To fund these massive projects, the government will rely on the new National Infrastructure Fund and the Sovereign Wealth Fund, supported by upcoming reforms under the Government-Owned Enterprises Bill, 2025.

Ruto said these financing tools will reduce dependence on borrowing and attract private capital through public-private partnerships. He added that proceeds from privatisation will now be ring-fenced and reinvested exclusively in infrastructure.

Govt Borrows Ksh437B in 3 Months

As reported in the Business Daily, the Treasury made net borrowing of Ksh437.8 billion in the first quarter of the 2025/26 fiscal year, driven by revenue shortfalls that now point to a wider budget deficit.

Domestic borrowing accounted for Ksh339.7 billion, while external lenders provided Ksh98.1 billion—nearly half of the full-year Ksh901 billion borrowing target.

Revenue fell short by Ksh83.6 billion, and spending exceeded targets, resulting in a Ksh280.4 billion deficit. 

Treasury PS Chris Kiptoo said budget execution was constrained by weak revenue growth, slow e-procurement uptake and spending pressures. 

The government front-loaded borrowing to manage upcoming loan repayments, raising Ksh310.6 billion through bonds and Ksh45 billion from T-bills as falling interest rates lowered borrowing costs and boosted investor demand.

UK Proposes Changes to Migration Rules: What it Means for Kenyans

The UK government has proposed major changes to its immigration system that could see legal migrants wait up to 20 years before qualifying for Indefinite Leave to Remain (ILR). 

Home Secretary Shabana Mahmood announced that the standard settlement period will double from five to 10 years for most of the 2.6 million people who arrived since 2021. 

As reported by the BBC, Migrants who claim benefits for less than a year will face a 15-year wait, while those relying on benefits for over 12 months could wait 20 years—the longest period in Europe. 

The reforms aim to create an “earned settlement” system requiring stronger English skills, clean criminal records, and proof of economic contribution. Accelerated routes will remain for NHS workers, high earners, and exceptional talent.

What it means for Kenyans: The UK’s new migration rules mean tougher entry pathways, fewer job opportunities abroad, and higher requirements for those seeking to study, work, or reunite with family.

I&M Increases Interim Dividend After a Ksh31B Profit 

I&M Group has raised its interim dividend by 15.3% to Ksh1.50 per share, totalling Ksh2.61 billion, following strong nine-month results.

The bank’s net profit for the period to September rose 28.7% to Ksh11.8 billion, supported by growth across its operations in Kenya, Uganda, Tanzania, Rwanda, and its Mauritius joint venture.

As reported by the Business Daily, shareholders registered by December 15 will receive the payout on January 14, 2026.

I&M’s net interest income grew 21% to Ksh31.82 billion, while non-interest income rose 17.9%. Lower interest expenses, driven by declining CBR rates, also boosted performance.

The lender expanded its loan book to Ksh301.9 billion and customer deposits to Ksh455.85 billion. This makes I&M the second bank to increase interim dividends this quarter.

Pensions Increase Investments in Bonds and Shares

The value of pension fund investments in bonds and equities rose 33%, up Ksh398.1 billion, in the year to June 2025, driven by strong capital gains and higher member contributions under the enhanced NSSF rates.

RBA data shows bond holdings increased by Ksh318.1 billion to Ksh1.33 trillion, while equities rose by Ksh80.2 billion to Ksh255.2 billion. Total pension assets grew 27.9% to Ksh2.53 trillion, supported by a stable macroeconomic environment marked by favourable interest rates, mild inflation, and a steady shilling. 

At the NSE, market capitalisation jumped 41.3% to Ksh2.42 trillion, boosted by rising blue-chip share prices. 

In the Business Daily, it was noted that pension funds also recorded bond market gains as falling interest rates pushed up prices, especially on high-coupon infrastructure bonds issued in 2023 and 2024.

Telcos on Spot as SMS Spam Messages Increase

Kenyan mobile users are increasingly frustrated by a surge in spam and unsolicited promotional SMSs, raising concerns about data privacy and how telcos handle customer information. 

Subscribers report receiving betting ads, trivia alerts, loans and premium services they never subscribed to—some of which deduct airtime or mobile money without consent. 

The Communications Authority has acknowledged rising complaints and linked its new SIM registration rules to efforts to curb misuse. 

Airtel data shows Kenya has the highest spam SMS prevalence among 13 African markets. Experts say spam senders often obtain numbers from online sign-ups, not necessarily from telcos.

The Data Protection Act requires legal data collection, clear opt-outs and accountability, allowing consumers to report violations to the ODPC for investigation. Read more.

Opera Mini Users to Get Free Safaricom Data Every Month

Opera Mini users on Safaricom will now receive 1.5GB of free data monthly after the two companies renewed their partnership to boost digital inclusion. 

As reported in the Standard, the offer applies automatically to new and existing users who update or open the latest Opera Mini app. 

Opera says the campaign has increased its monthly users in Kenya by 13%, with daily active users rising 93%. Safaricom also reports higher browser activity as more Kenyans turn to affordable internet options. 

The Communications Authority notes Kenya now has 58.5 million data subscriptions. Opera has invested in local infrastructure, including a Nairobi data centre, and added free AI tools to the browser. Opera Mini’s data-saving features allow users to cut usage by up to 90%.

Market update: KCB Bank has announced that it moving all local currency loans to the KESONIA loan pricing model effective December 1st. The new model allows bank to set interest rates based on the risks factor of the borrower. Read more.