Pressure is mounting on Parliament to rethink how the government plans to sell part of its stake in Safaricom, with a prominent community and professional association calling for local investors to take priority.
The GEMA Cultural Association, through its professional arm Ndari Kirimaini, has told a parliamentary committee that Kenyan retail investors, pension funds, insurance companies and other local institutions should be given first right to buy the government’s shares, instead of selling them directly to Vodacom Group.
“Prioritising Kenyan investors ensures that dividend income and long-term value remain within the domestic economy rather than flowing abroad, strengthening our national capital base,” the group said in its submission. GEMA stressed that its position is not anti-foreign investment; it is pro-Kenyan economic empowerment and sustainable wealth creation.
The association said Kenya’s domestic capital markets are strong enough to absorb the sale, pointing to regular oversubscription in Treasury bond auctions as proof that local investors have surplus liquidity.
It argued that opening the sale to ordinary Kenyans and local institutions would deepen the capital market and keep future dividend flows within the country.
The views are being considered as Parliament carries out public participation on the proposal to divest part of the state’s holding in Safaricom, a constitutional requirement before any sale can be approved. The government currently owns 35 per cent of the telecoms firm and plans to sell 15 per cent.
If approved, the transaction is expected to raise about Sh204 billion. The government would retain a 20 per cent stake, while Vodacom’s shareholding would increase to about 55 per cent. Public investors would continue to hold the remaining 25 per cent.
Treasury has defended the plan as part of efforts to raise non-tax revenue, ease pressure on borrowing and finance key development projects, including infrastructure, energy and water programmes.
However, the proposal has triggered debate among lawmakers, investors and civil society. Critics have raised concerns over valuation, transparency and whether the process adequately protects public interest and local ownership. Petitions and legal challenges have already been lodged as the hearings continue.
Parliament is expected to consider all submissions before making a final decision on the proposed sale of the Safaricom shares.
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