Members of Parliament will hold public hearings in January 2026 on the government’s proposal to sell 15 per cent of its Safaricom stake to South Africa’s Vodacom through Vodafone Kenya, amid growing concerns over valuation and transparency.
National Assembly Speaker Moses Wetang’ula directed the Finance and National Planning Committee and the Select Committee on Public Debt and Privatisation to begin collecting public views on January 18. The directive follows the tabling of Sessional Paper No. 3 by the National Treasury.
Vodafone Kenya currently owns 40 per cent of Safaricom. The proposed transaction would raise its stake to 55 per cent, with the sale of 6 billion shares expected to generate about Sh240 billion. The government would retain a 20 per cent shareholding.
Wetang’ula said the extended public participation window was necessary because Safaricom is a government-linked company listed on the Nairobi Securities Exchange. He noted that the hearings will allow Kenyans and stakeholders to scrutinise the proposal thoroughly.
Kiharu MP Ndindi Nyoro has criticised the plan, arguing that basing the sale on the current market price risks undervaluing Safaricom and denying Kenyans fair value. He accused the government of choosing shortcuts instead of focusing on long-term economic growth.
Treasury Cabinet Secretary John Mbadi defended the sale, saying it will raise $1.577 billion in dollar inflows, with Vodacom set to make an upfront Sh40.2 billion payment to offset future dividends from the government’s remaining 20 per cent stake.
According to the Sessional Paper, Safaricom’s six-month volume-weighted average price stood at Sh27.50, valuing the company at Sh1.158 trillion. The proposed sale price of Sh34 per share represents a 17 per cent premium. Treasury says the proceeds will finance key infrastructure projects in roads, water, energy, and airports.
The government will maintain two board seats to safeguard national interests, while Vodacom has committed to no job redundancies for three years and to keeping the chairperson and independent directors Kenyan.
The paper argues that the partial divestiture will strengthen Kenya’s fiscal position, reduce debt, deepen capital markets, and boost investor confidence.
