Kenyans now have an opportunity to give their opinions on the government’s plan to sell part of its shares in Safaricom, after the National Assembly officially opened the public participation process.
This step comes at a time when the government has already announced that it expects Ksh 244.5 billion from the deal, which is meant to support major infrastructure projects across the country.
The invitation to the public follows the tabling of Sessional Paper No. 3 of 2025 in Parliament. The document sets out the details of the proposed sale of 6.01 billion Safaricom shares, amounting to 15 per cent of the company. Despite the sale, the government plans to keep a 20 per cent stake and two seats on the board, describing this as a way to maintain a strategic presence in the telecom giant.
As the procedure requires, the Sessional Paper has been forwarded to the Finance and National Planning Committee and the Public Debt and Privatisation Committee.
Their review is guided by Section 87A of the Public Finance Management Act, which sets rules for how the State handles the disposal of public assets.
Parliament stressed the constitutional requirement to involve Kenyans in such decisions. It reminded the public that:
“Article 118(1)(b) of the Constitution requires Parliament to facilitate public participation and involvement in the legislative and other business of Parliament.”
The National Assembly also highlighted the checks in place before the government shares in any State-linked corporation can be sold. It noted:
“Any sale of the National Government’s shares in a government-linked corporation must be approved by the Cabinet and by a resolution of the National Assembly to ensure fiscal prudence, parliamentary oversight, and to reinforce transparency and accountability in the management of public investments.”
The Treasury recently released more information about the deal. One of the key elements is that Vodacom Group will take over Vodafone Kenya’s entire interest in Safaricom. This shift will raise Vodacom’s total shareholding to 55 per cent, further consolidating its influence in the company. The State will hold 20 per cent, while the public will retain 25 per cent ownership.
Treasury Cabinet Secretary John Mbadi said the divestment is a reflection of solid investor confidence in Safaricom and fits within ongoing fiscal reforms.
The Sessional Paper sets the offer price at Sh34 per share, which is 17 per cent higher than the telco’s six-month average of Ksh 27.50. The government is also set to receive Sh40.2 billion upfront from Vodacom in exchange for future dividends from the government’s remaining stake.
With a valuation of Ksh 1.158 trillion, Safaricom remains the largest company on the Nairobi Securities Exchange and a key national asset. The Sessional Paper argues that selling part of the stake to Vodacom, which is already a major shareholder, will strengthen the firm’s competitiveness in the region, boost capital markets, and reduce the government’s exposure to further share dilution.
Parliament is now reaching out to a wide group of stakeholders, including shareholders, employees, customers, regulators, and ordinary Kenyans, to give their comments. All memoranda should be submitted to the Clerk of the National Assembly by January 8, 2026.
This sale is part of the State’s wider push to increase non-tax revenues, rely less on borrowing, and create more room in the national budget for big infrastructure projects.
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