Members of Parliament have commenced formal stakeholder engagements on the government’s proposal to partially divest its shareholding in Safaricom PLC, a move expected to raise over Sh 204 billion to finance key infrastructure projects a move targeting to ease pressure on public debt.
A Joint sitting of the Kimani Kuria (Molo) led-Finance and National Planning, and Abdi Shurie (Balambala) led by Public Debt and Privatisation, commenced stakeholder engagements on Sessional Paper No. 3 of 2025 on the Partial Divestiture of the Government of Kenya’s Shareholding in Safaricom PLC.
The partial divestiture is expected to generate approximately Sh204 billion in aggregate proceeds through the divestiture of 15 percent stake in Safaricom at a significant premium of 23.6 percent to the 6-month volume weighted average price ending 2 December 2 2025.
According to the Ministry of National Treasury and Economic Planning, the transaction, which is geared towards facilitating the mobilization of resources, is the first step in the Government’s plan to allocate resources into critical infrastructure investment priorities, specifically in Energy, Roads, Water, and Airports.
The National Treasury further submitted that the rationale for the divestment is anchored on the need to mobilize substantial non-tax revenue to support the State to deliver priority infrastructure development, reducing reliance on debt while expanding fiscal space for development priorities.
The lawmakers drawn from the two Committees are set to hold consultative meetings with Kenya Institute of Public Policy and Research Analysis (KIPPRA), and the Parliamentary Budget Office on the proposed divestiture engagements scheduled to run through Tuesday, January 20, 2026.
More to follow...
