Business

By Lucianne Limo

The Government has reassured the public that the sale of Safaricom shares will be completed "before Christmas". Finance minister, Mr Amos Kimunya allayed fears that the Government may not float the shares of the company before December.

Vodafone Plc of the UK and joint venture partners with Telkom in Safaricom Ltd had expressed fears that a cabinet delay was likely to scuttle plans for early sale of Safaricom shares. They predicted that a delay by the cabinet in approving a critical agreement may render it impossible to float the shares of the company before December.

Kimunya said a consortium led by Dyer and Blair Investment, which is heading the Government process of selling the shares to the public, was preparing documentation.

"There has been a lot of work going on and we are still on course. We will have the IPO before Christmas so that Kenyans can celebrate owning the company as individuals," he added.

The minister said the Government will offer to the public 25 per cent of Safaricom shares during the IPO, which is part of an ongoing privatisation programme.

If the stake is sold on the Nairobi Stock Exchange as planned, it would be the largest IPO on the bourse. The company recorded a pre-tax of Sh17.2 billion for the year ending March 31,up 40 per cent on the previous year. The sale of the 25 per cent stake of Safaricom is expected to raise Sh34 billion later this year.

The mobile operator is the most profitable mobile operator in the Kenya, with an estimated market capitalisation of over $2 billion (Sh130 billion).

"We want Kenyans to now own the company. You should now be preparing your finances to get a piece of the company," the Kimunya said after signing a Sh215 million grant Aid from the Japanese Government for the control of HIV/Aids in the country at his Treasury office.

A further Sh24 million was granted to Kenya Broadcasting Corporation (KBC) for the improvement of Television programmes of the station.

He said the funds for the HIV/Aids pandemic will be used to purchase 2.8 million sets of rapid HIV/Aids tests kits in the 2008 fiscal year. The project targets three million people. HIV prevalence rates stand at six per cent, with over 1.3 million people living with the virus.

Receiving the grant, Kimunya said the project will complement the Governments efforts of combating the pandemic. Test kits will be used in 800 voluntary counselling and testing centers. He said the Government had scaled up funding towards combating the disease.