Kenya National Assembly has approved the partial sale of government shares in Safaricom, paving the way for a transaction expected to raise about KSh240 billion for infrastructure development.
The House adopted a joint report by the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee, allowing the government to offload a 15% stake in the telecommunications firm to Vodacom.
The approval clears the way for the National Treasury to proceed with the transaction from 1 April once all regulatory conditions outlined in the share purchase agreement are met.
Under the agreement, the government is expected to generate about KSh200 billion from the share sale and an additional KSh40.2 billion in upfront payments in lieu of future dividends.
The proceeds will be channelled into the National Infrastructure Fund to support key development projects, including transport, energy and digital connectivity.
Parliamentary approval and concerns
The decision was met with debate in the House, with Suba South MP Caroli Omondi raising concerns over an ongoing court case challenging the transaction. He questioned whether Parliament could proceed with the approval while the matter remains before the courts.
National Assembly Speaker Moses Wetang’ula dismissed the concerns, ruling that Parliament is not a party to the case and cannot be barred from executing its constitutional mandate.
Majority Leader Kimani Ichung’wah also downplayed the objections, saying the issue had already been debated in the House.
A joint parliamentary committee had earlier reviewed and endorsed the proposal, subject to conditions aimed at safeguarding public interest.
Among the key recommendations was that the transaction should not result in job losses and that Safaricom existing business model should be preserved.
Lawmakers also stressed that personal data must remain secure under existing cybercrime laws and that employees’ rights should be protected.
In addition, the committee recommended that part of the payment be made upfront in the form of dividends, with all proceeds ring fenced for infrastructure funding.
Safaricom has defended the transaction in court, arguing that it is lawful and subject to regulatory oversight. Through its lawyers, the company warned that suspending the process could unsettle financial markets and weaken investor confidence.
If completed, the transaction will increase Vodacom stake in Safaricom from 40% to 55%, giving it majority control of the company, while the government shareholding will reduce from 35%.