Members of Parliament have cleared the way for the government to sell its 15% stake in Safaricom PLC to Vodacom Group. The deal should raise over Sh204 billion, providing a massive boost for national infrastructure projects.
The House Public Debt and Privatization Committee, alongside the Finance Committee, recommended the transaction and directed that the money go straight into the National Infrastructure Fund. Both committees tabled a joint report to guide the sale and provide clear oversight.
Co-chaired by Molo MP Kimani Kuria and Mbalambala MP Shurie Abdi, the joint committee also took specific steps to protect the jobs of hundreds of Safaricom employees during the transition, including implementing a job retention plan and providing retraining opportunities for affected staff.
“I beg to give notice of the motion that this House adopts the joint report of the departmental committees on finance and public debt on the consideration of Sessional Paper No. 3 of 2025 on partial divestiture of Safaricom by the government, laid on the table of the House on March 10, and approves Sessional Paper No. 3 of ’20,” Shurie said while presenting the report.
The original deal only shielded current employees from layoffs for three years. However, the revised report now provides long-term safeguards. It also requires the National Treasury Cabinet Secretary to guarantee that no major changes to the business model will hurt dealers, agents, or other partners for at least ten years.
The report states that the Treasury will finalize the sale through the block trade platform on the Nairobi Securities Exchange once they receive all regulatory approvals for the share price. The government expects to receive upfront payments of roughly Sh40.2 billion in place of future dividends, with all proceeds flowing into the National Infrastructure Fund (NIF).
The committee clarified that Safaricom will remain a Kenyan company, even as the government sells a portion of its shares to South Africa-based Vodacom, the chosen strategic partner. The government plans to sell 15% of its 35% controlling stake.
Specifically, the government will sell about six billion shares at Sh34 per share, raising approximately Sh204.3 billion. When combined with the upfront dividend payment, the total expected cash inflow reaches about Sh244.5 billion.
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