Members of Parliament have approved a government plan to sell part of its stake in Safaricom PLC to Vodacom Group, clearing the way for a transaction expected to bring in about Sh244 billion to support infrastructure development through the National Infrastructure Fund.
The approval followed the adoption of a joint report by the National Assembly’s Departmental Committees on Finance and Public Debt and Privatisation, which endorsed the proposal contained in Sessional Paper No. 3 of 2025 on the partial divestiture of Safaricom shares held by the state.
The committee report was presented in the House by Mbalambala MP Shurie Abdi, who told lawmakers the proposal had been reviewed and adjusted to address concerns raised during deliberations.
“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.
Under the approved plan, the government will sell about six billion shares, equivalent to 15 per cent of Safaricom, at Sh34 per share. The sale is projected to raise roughly Sh204.3 billion.
The Treasury will also receive an upfront payment of about Sh40.2 billion representing future dividend rights tied to the remaining government stake, bringing the total expected inflow to about Sh244.5 billion.
All proceeds from the transaction will be directed to the National Infrastructure Fund, which the government intends to use to finance major development projects across the country.
The committees, co-chaired by Molo MP Kimani Kuria and Shurie Abdi, also introduced new conditions aimed at protecting workers and partners linked to the telecommunications company.
Initially, the arrangement only guaranteed that current Safaricom employees would not face layoffs for three years. The revised report expanded these protections to ensure long-term safeguards for staff.
The committees further directed the National Treasury Cabinet Secretary to ensure that no major changes to Safaricom’s current business model will affect dealers, agents, and other partners for at least ten years.
According to the report, the transaction will be carried out through the block trade platform of the Nairobi Securities Exchange after all required regulatory approvals are secured and the share price agreement is finalised.
Lawmakers also stated that the company will remain Kenyan even after the partial sale, noting that Vodacom has been identified as the strategic partner for the transaction. The state currently holds a 35 per cent stake in Safaricom and intends to divest up to 15 per cent of that holding.
Despite the parliamentary approval, the plan has faced strong criticism from the United Opposition, which warned that reducing government ownership in Safaricom could have wider economic and security implications.
The opposition coalition, led by former Deputy President Rigathi Gachagua, Wiper party leader Kalonzo Musyoka, and DAP-K leader Eugene Wamalwa, argued that Safaricom plays a central role in national systems and should be treated as critical infrastructure.
They said the company supports essential digital services including the mobile money platform M-PESA, the government service portal eCitizen, the national identification system Huduma Namba, and other communication networks linked to national security.
The group pointed to the company’s strong financial performance, noting that the Sh48.08 billion dividend payout in the 2024 financial year highlights the value Safaricom brings to the government.
“Divesting even partially to plug short-term fiscal gaps is the economic equivalent of a family selling its most productive farm to cover annual household shopping,” the group said in a recent statement.
Opposition leaders also warned that reducing the state’s ownership without firm safeguards could expose the country to security risks.
“Questions such as who may buy the divested shares, whether foreign state actors are barred, golden share mechanisms, and the future of universal service obligations remain unaddressed.”
They further drew comparisons with the planned initial public offering of Kenya Pipeline Company, saying past concerns around valuation, adviser selection, and participation of retail investors should serve as a caution.
According to the opposition, unresolved issues around that process raise doubts about whether the government can effectively manage the Safaricom divestiture or the broader operations of the National Infrastructure Fund.