Kenyans have been invited to submit their opinions on a proposed sale of government-held Safaricom shares, one of the largest divestiture transactions in the country’s corporate history aimed at raising billions to finance key development projects.
The plan, outlined in Sessional Paper No. 3 of 2025, seeks to offload 15 per cent of the government’s stake while retaining a strategic 20 per cent, with proceeds earmarked for infrastructure, digital transformation and other priority sectors.
In a notice, National Assembly Clerk Samuel Njoroge said the submissions will guide parliamentary committees as they scrutinise the plan, ensuring transparency and public participation.
The Sessional Paper, submitted by the Cabinet Secretary for the National Treasury, was referred to the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee for consideration and reporting to the House.
Safaricom PLC is listed on the Nairobi Securities Exchange, with a six-month volume-weighted average share price of approximately Sh27.50, giving the company a market capitalisation of about Sh1.158 trillion (USD 8.979 billion).
The plan proposes divesting 6,009,814,200 shares, representing 15 per cent of Safaricom, while retaining 8,012,758,380 shares, equivalent to 20 per cent. The sale is expected to generate roughly Sh204.3 billion (USD 1.5 billion) based on a Sh34 share price, a 17 per cent premium over the six-month average. Vodacom Group will also make an upfront payment of Sh40.2 billion (USD 309 million) in lieu of future dividends from the government’s remaining stake.
The proceeds are intended to support critical infrastructure projects in energy, roads, aerospace, water and digital transformation, reduce reliance on debt, expand fiscal space, and shift the government’s role to policy and regulation. The plan also aims to maintain Safaricom’s competitiveness, safeguard national interests, and ensure continuity in governance. Vodacom has committed to avoiding redundancies for three years, keeping the chairman and independent directors Kenyan, and continuing to support the Safaricom Foundation.
“In compliance with the Constitution, the public and stakeholders, including shareholders, management, employees, customers, and regulators, are invited to submit memoranda to the Clerk of the National Assembly by post, hand delivery, or email at cna@parliament.go.ke by 5.00 p.m. on Thursday, 8 January 2026. Copies of the Sessional Paper are available at the National Assembly Table Office and online at www.parliament.go.ke,” Njoroge said.
The proposed sale has, however, attracted scrutiny. Kiharu MP Ndindi Nyoro urged that the shares be sold through a competitive bidding process rather than directly to Vodacom, expressing concern that the planned sale undervalues the shares.
“Let us not rush the sale of a 15 per cent share in Safaricom. Let’s give people a chance to compete. Let’s open a competition of bids so that we can have many companies bidding to buy that stake of Safaricom so that Kenyans can get full value for the stake we have in Safaricom, the 35 per cent the government has in Safaricom, we own all of as Kenyans,” Nyoro said.
He questioned the credentials of the government representatives handling the deal, implying that some may not be officially contracted to negotiate on behalf of the state, potentially affecting the fairness and transparency of the transaction.
“I have experience in the capital market. The people who represented the government in this deal, probably some of them are not government employees, and some of them are not contracted to negotiate on behalf of the government, and maybe those people there are doing things they do with the buyers,” he said.
Nyoro further warned that the administration might be tempted to sell additional stakes before the 2027 general election, potentially offloading remaining shares to entities like the National Social Security Fund.
The lawmaker proposed alternative restructuring approaches, arguing the government could have created three separate entities from Safaricom’s operations—potentially splitting off M-Pesa and infrastructure assets—to unlock greater value while maintaining strategic control over critical national telecommunications infrastructure.
Treasury CS John Mbadi responded by dismissing Nyoro’s concerns, clarifying that the MP was conflating the value of the company with the value of its shares.
“The value of a company as an entity is not the same as the value of its shares. The government is selling shares, not the entire business,” Mbadi said.
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. 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.
Treasury Cabinet Secretary Mbadi articulated an ambitious vision for deploying the Sh244.5 billion proceeds. The government plans to use these funds as seed capital for both a National Infrastructure Fund and a Sovereign Wealth Fund, with the infrastructure fund designed to attract private sector co-investment that could multiply the available capital significantly.
The transaction requires regulatory approvals from multiple Kenyan authorities before completing. The Competition Authority of Kenya must review the deal to ensure it doesn’t create anti-competitive market conditions or consumer harm. Given Vodacom’s existing significant stake in Safaricom, regulators will examine whether increased control concentrates market power excessively.
The Capital Markets Authority must also approve the transaction since it involves a substantial change in ownership of a listed company. The CMA’s review will focus on whether minority shareholders receive adequate protection and whether the transaction complies with securities regulations governing major transactions by publicly listed entities.
Parliamentary approval, represents a significant political hurdle. The National Assembly’s Budget and Appropriations Committee and relevant departmental committees will scrutinize the transaction, with MP Nyoro’s opposition indicating potential political resistance.
Legal experts suggest the combination of the premium pricing, protective conditions, and clear strategic rationale should facilitate regulatory approval, though the timeline remains uncertain.
