MPs Backs Sh204 Billion Safaricom Share Sale to Vodacom
Parliament has approved the sale of a 15 percent government stake in Safaricom to Vodacom, a transaction valued at Sh204 billion, following the tabling of a report by a joint parliamentary committee.
The report, prepared by the National Assembly’s Finance and National Planning Committee together with the Public Debt and Privatization Committee, endorsed the proposed divestiture but attached conditions aimed at protecting public interest. Among the key safeguards is a requirement that the transaction must not lead to job losses.
Proceeds from the sale are expected to support the National Infrastructure Fund, a newly created government vehicle intended to finance major development projects across the country.
The matter sparked intense debate in the National Assembly, with lawmakers sharply divided over whether the deal represents value for Kenyans.
Kiharu MP Ndindi Nyoro strongly criticised the proposed transaction, arguing that the government’s stake had been undervalued.
“The deal was undervalued. Kenyans have been given a raw deal. The joint committee is incompetent,” Nyoro told the House.
His remarks were challenged by Molo MP Kuria Kimani, who called on Nyoro to provide an alternative valuation framework.
“Ndindi, why can’t you give us an alternative model for valuation?” Kimani posed during the debate.
National Assembly Majority Leader Kimani Ichung’wah also pushed back against the criticism, accusing Nyoro of misinforming the public.
“Ndindi is moving around markets misleading Kenyans,” Ichung’wah said.
However, some lawmakers defended Nyoro’s concerns. Suba South MP Caroli Omondi said those backing the deal should address the issues raised instead of dismissing them.
“Ndindi is right and you who support this should stop misleading Kenyans,” Omondi said.
Kitui Central MP Makali Mulu also expressed scepticism about the government’s intentions.
“This government cannot be trusted,” he said during the debate.
Despite the disagreements, the joint committee maintained that the valuation process included safeguards to protect taxpayer interests.
According to the report, the negotiated price of KSh34 per share reflects prevailing market conditions. The committee also argued that dealing directly with Vodacom would reduce execution risks and help maintain investor confidence in Safaricom.
Lawmakers were further assured that customer data protection would remain safeguarded under the Computer Misuse and Cybercrimes Act.
In addition, the committee recommended that the jobs of approximately 855,000 people directly employed within Safaricom’s ecosystem be protected following the transaction.
The report also proposed that Vodacom pay Sh40.2 billion in dividends upfront to the government, with all proceeds from the share sale to be ring-fenced within the National Infrastructure Fund to ensure they are used for development projects.