Kenya’s business community has raised fresh concerns over the government’s plan to sell part of its stake in Safaricom PLC, warning Parliament against rushing a decision that could have long-term economic and strategic consequences.
Appearing before a joint sitting of the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation on Friday, January 16, 2026, the Kenya National Chamber of Commerce and Industry (KNCCI) urged lawmakers to approach Sessional Paper No. 3 of 2025 with caution. The paper outlines the government’s proposal to partially divest its shareholding in Safaricom.
The government plans to sell 15 per cent of its shares in the telecommunications firm to the Vodacom Group as part of efforts to ease mounting fiscal pressure. The transaction involves the sale of more than six billion shares at Sh34 per share, which is expected to raise about Sh204.3 billion.
If approved by the National Assembly, the sale would reduce the government’s stake in Safaricom from 35 per cent to 20 per cent, while Vodacom’s ownership would increase to 55 per cent, giving the multinational firm effective control of the company.
No ordinary commercial asset
While acknowledging the government’s need to raise revenue, KNCCI cautioned that Safaricom should not be viewed as an ordinary commercial asset. The chamber told lawmakers that the company plays a central role in Kenya’s economy and digital infrastructure.
“Hon. Members, Safaricom’s M-Pesa processes over Ksh25 trillion annually and supports over 1 million MSMEs. Any ownership change impacts business continuity, transaction costs, and national security”, the Chamber told the lawmakers.
KNCCI warned that transferring control of Safaricom to an external entity could expose the country to strategic risks, particularly in areas such as mobile money, data protection and digital payments, which are now deeply embedded in everyday economic activity.
The chamber further cautioned that selling large blocks of shares to offshore investors would result in future dividend flows leaving the country, potentially weakening Kenya’s balance of payments over time.
Although KNCCI said it does not outrightly oppose the proposed sale, it called on Parliament to impose safeguards to protect the domestic economy.
Among its proposals was that any future share sales should prioritise Kenyan investors, either through the Nairobi Securities Exchange or locally anchored investment vehicles.
The business lobby also urged lawmakers to ensure that proceeds from the sale are ring-fenced through legislation and used strictly for debt reduction and productive infrastructure, rather than recurrent government expenditure.
KNCCI stressed that strong regulatory oversight would be necessary should the sale proceed, warning against possible increases in transaction fees that could burden micro, small and medium-sized enterprises. The chamber also called for firm measures to protect data sovereignty and ensure Safaricom continues to innovate in a way that benefits the local market.
The proposed divestiture has sparked wider debate among lawmakers, investors and the public, with concerns also being raised over the valuation of the shares and the long-term implications for one of Kenya’s most influential companies. Parliament is expected to continue stakeholder consultations before making a final decision on the proposal.
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