Parliament has intensified scrutiny of the government’s plan to sell part of its stake in Safaricom PLC, with MPs questioning the proposed share price and pushing for greater public involvement in the process.
During its fourth day of stakeholder hearings on Friday, January 16, 2026, lawmakers sitting on the Joint Committee on Finance and Planning and the Select Committee on Debt and Privatisation heard from market professionals who largely backed the proposed divestiture but acknowledged the sensitivity of the transaction.
The Kenya Association of Stockbrokers and Investment Banks (KASIB) and the Fund Managers Association (FMA) told the committees that selling part of the government’s holding would help unlock capital for infrastructure projects and ease pressure on public finances. They said the transaction could raise about KSh 244.5 billion, funds they argued are urgently needed.
“During the session being chaired by Kitui Rural MP, David Mboni, KASIB has supported the decision to divest, noting it will generate approximately Ksh 244.5 billion for infrastructure and debt reduction,” the association said.
The two bodies defended the proposed price of Ksh 34 per share, saying it includes a premium above the current market value and aligns with how large strategic trades are usually priced. They maintained that the valuation was fair and in line with prevailing market practices.
However, MPs were not fully convinced. Several legislators questioned whether the price accurately reflects Safaricom’s strategic importance to the country, citing its central role in communications, financial transactions and national security.
“Safaricom is not an ordinary investor in Kenya. İt’s a crucial entity that has a role in our Kenyan democracy. Election results are transmitted through the network. It’s the main security surveillance system for security agencies and holds a lot of our personal and financial data. What factors make you believe that Ksh 34 is a fair value for us to approve it?” Homabay Town MP Peter Kaluma asked.
Public participation
Beyond valuation, lawmakers also raised concerns about transparency and citizen participation. Committee members proposed that the sale be conducted through the Nairobi Securities Exchange Block Trading Board to allow for clear price discovery and broader participation by Kenyan investors.
In response, KASIB and FMA suggested expanding the divestiture beyond the proposed 15 per cent. They proposed selling 15 per cent to Vodacom while offering an additional 5 per cent to the public through the NSE, a move they said would deepen local ownership and improve market liquidity.
The associations insisted that national interests could still be protected even after the sale. They said the government should retain special rights, including veto powers over key decisions, ensure Safaricom’s headquarters remain in Kenya, and secure commitments that the company stays listed on the NSE without forcing out minority shareholders.
They also noted that Safaricom remains subject to strict oversight by regulators such as the Communications Authority of Kenya and the Central Bank of Kenya, arguing that regulatory controls would continue to safeguard public and security interests.
Parliament is expected to continue receiving views from various stakeholders before compiling a report that will guide the House on whether to approve the proposed Safaricom share sale.
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