Nairobi, Feb. 12 -- Safaricom's share price has rallied to hit Sh34, the level at which the National Treasury agreed to sell a 15 percent stake in the telco to South Africa's Vodacom Group.

This means that it has taken just over two months for the market to close the premium that the government said it had negotiated in the deal.

The State will get Sh204.3 billion for its six billion shares and a separate Sh40.2 billion representing an upfront payment of dividends that will accrue on its residual 20 percent stake in Safaricom. This will bring its total payout to Sh244.5 billion.

The Cabinet Secretary for National Treasury and Economic Planning,John Mbadi, has said that the Sh34 per share deal was arrived at by applying a premium on Saf...