MPs to hold public hearings on proposed sale of 15 per cent Safaricom stake to Vodacom
The planned transaction will raise its stake to 55 per cent. The sale of the 15 per cent stake, comprising 6,009,814,200 shares, is expected to generate about Sh240 billion, while the government will retain a 20 per cent share, representing 8,012,758,380 shares.
Members of Parliament will begin public hearings in January 2026 on the government’s plan to sell 15 per cent of its Safaricom shares to South Africa’s Vodacom group through Vodafone Kenya, amid concerns over potential undervaluation and lack of transparency.
The National Assembly Speaker, Moses Wetang’ula, directed the Finance and National Planning Committee and the Select Committee on Public Debt and Privatisation to start the hearings on January 18, 2026, following the tabling of the proposal in Sessional Paper No. 3 by the National Treasury.
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Currently, Vodafone Kenya is Safaricom’s largest shareholder, holding 16 billion shares, equivalent to 40 per cent.
The planned transaction will raise its stake to 55 per cent. The sale of the 15 per cent stake, comprising 6,009,814,200 shares, is expected to generate about Sh240 billion, while the government will retain a 20 per cent share, representing 8,012,758,380 shares.
“Given the nature of the proposals contained in the Sessional Paper and the fact that the House is scheduled to proceed for its long recess later today, I have directed the Clerk to invite the public and stakeholders to submit views on the Sessional Paper for a period of not less than 30 days as from Monday, December 8, 2025. The two committees are hereby permitted to commence their sittings as from Monday, January 18, 2026,” Wetang’ula said.
He added that the early resumption will allow the committees to engage in extensive public participation, noting Safaricom is a government-linked company listed on the Nairobi Securities Exchange.
Kiharu MP Ndindi Nyoro has criticised the deal, claiming it undervalues Safaricom. He argued that relying on the current market price as the basis for the transaction deprives Kenyans of fair value.
“The government is underselling Safaricom and Kenyans are going on losses. The government is too lazy to grow the economy because that is when you get to support the growth of infrastructure, and we are now looking for shortcuts. This is just the beginning,” he said.
Treasury Cabinet Secretary John Mbadi defended the sale, highlighting that the funds will be received in US dollars, totalling $1.577 billion.
Vodacom will make an upfront payment of Sh40.2 billion (approximately $309 million) to the government, offsetting future dividends from the government’s residual 20 per cent stake in Safaricom.
The Sessional Paper notes that Safaricom’s volume-weighted average share price in the six months to December 2, 2025, was about Sh27.50, giving the company a market capitalisation of Sh1.158 trillion ($8.979 billion).
The proposed sale price of Sh34 per share represents a 17 per cent premium over the current market price. Mbadi emphasised that the proceeds will fund critical infrastructure projects in energy, roads, water, and airports.
“The objective of this paper is to submit to the National Assembly a detailed proposal for partial divestiture of its shareholding in Safaricom PLC. The partial divestiture generates approximately Sh204 billion (c.$1.57bn) in aggregate proceeds through the divestiture of a 15 per cent stake at a significant premium of c.23.6 per cent to the 6-month volume weighted average price ended December 2, 2025,” the paper further explains.
Following the sale, the government will retain 20 per cent of Safaricom shares and maintain two seats on its board to protect national interests, ensure governance continuity, and preserve Kenya’s digital innovation leadership.
Vodacom has committed to no job redundancies for three years post-transaction, keeping the chairman and independent directors Kenyan and supporting the Safaricom Foundation.
The Sessional Paper highlights that the divestiture will strengthen fiscal sustainability, reduce debt, manage the budget deficit, deepen capital markets, and boost Kenya’s position as an investment hub.
“The proposed partial divestiture by the Government of Kenya in Safaricom is a clear reflection of the growing strength and maturity of our economy as well as our Capital Market, and this transaction is well positioned to support the financing of our priority infrastructure requirements,” the paper states.
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