The government has opened the floor for public submissions on its plan to sell part of its Safaricom stake, a move designed to raise billions of shillings to fund key national development projects.
According to the proposal presented in Sessional Paper No. 3 of 2025, the government intends to float 15 per cent of its shares in Safaricom while retaining a strategic 20 per cent. Proceeds will be used to finance infrastructure, digitization, and other areas of priority.
National Assembly Clerk Samuel Njoroge said the input by the public will guide parliamentary committees in scrutinizing the plan. He observed that the process ensures transparency and meaningful participation by citizens.
“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.
Details of the Proposed Sale
The Sessional Paper has been presented by the Cabinet Secretary for the National Treasury and referred to the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee for review and reporting to the National Assembly.
Safaricom PLC is listed on the Nairobi Securities Exchange and has an average six-month volume-weighted average share price of about Sh27.50, giving the telecom a market capitalisation of about Sh1.158 trillion (USD 8.979 billion).
The government intends to dispose of 6,009,814,200 shares representing 15 percent of Safaricom, retaining 8,012,758,380 shares representing 20 percent. The sale could raise approximately Sh204.3 billion (USD 1.5 billion), assuming a Sh34 per-share price, a 17 percent premium over the six-month average.
Vodacom Group will make an upfront payment of Sh40.2 billion (USD 309 million) in lieu of future dividends from the government’s remaining stake.
Officials said the proceeds will fund critical infrastructure projects in energy, roads, aerospace, water, and digital transformation, reduce reliance on debt, expand fiscal space, and shift the government’s focus toward policy and regulation rather than direct operational management.
Safeguarding Safaricom’s Competitiveness and National Interests
The plan also prioritizes Safaricom’s long-term competitiveness while protecting national interests. Vodacom has committed to:
- Avoiding redundancies for three years
- Maintaining a Kenyan chairman and independent directors
- Continuing to support the Safaricom Foundation
Government officials say these measures will ensure smooth governance continuity and protect both employees and investors.
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