Kenyans have until January 8, next year, to submit their views on the proposed sale of 15 percent of government-held stake in Safaricom PLC to South Africa-headquarted Vodacom Group. 

The call for public input follows last week’s announcement that the National Treasury is eyeing KES240.5 billion from the sale of part shareholding in the telco to Vodacom Group as part of its strategy to raise funding for the construction of key infrastructure projects in the country.

According communique under Sessional Paper No. 3 of 2025 published on Monday, the National Treasury seeks to offload 15 percent of the government’s shareholding in East Africa’s most profitable company while retaining a strategic 20 percent. 

The Sessional Paper, which was submitted by the Cabinet Secretary for the National Treasury, has been referred to the House Departmental Committee on Finance and National Planning and the Public Debt and Privatization Committee for consideration. 

Last week, a section of Kenyans faulted the Treasury for the planned sale, arguing that the government rushed the transaction, disregarding public opinion. 

Kiharu MP Ndindi Nyoro, who has been a critique of President William Ruto’s administration since their falling out about nine months ago, termed the transaction “reckless” undervaluation of Kenya’s “most prized asset,” accusing the government of incompetence and self-interest.

A better deal for Kenyans

“The Government is underselling Safaricom and should reconsider. The valuation is grossly bad for Kenya. Safaricom PLC shares were trading at KES45 in 2021, valuing the company at KES1.8 Trillion. Now, the government of Kenya is selling at KES34 per share, with a valuation below KES1.4 Trillion. A 24 percent discount from the 2021 valuation. Either there was self-interest or incompetence in negotiating for a better deal for Kenyans,” said Nyoro, who is a former Chairman of the House Budget Committee.

“Now therefore, in compliance with Article 88(1)(b) of the Constitution, the Clerk of the National Assembly hereby invites the public and stakeholders, including shareholders, management, employees, customers, regulators and interested parties to submit memoranda on the Sessional Paper to the Departmental Committee on Finance and National Planning and the Public Debt and Privatization Committee,” reads part of the notice.

National Assembly Clerk Samuel Njoroge said the submissions will guide parliamentary committees to scrutinise the planned sale to ensure transparency and public participation.

“In compliance with the Constitution, the public and stakeholders, including shareholders, management, employees, customers, and regulators, are invited to submit memoranda to the Clerk of the National Assembly by post, hand delivery, or email at [email protected] by 5.00 p.m. on Thursday, 8 January 2026. Copies of the Sessional Paper are available at the National Assembly Table Office and online at www.parliament.go.ke,” noted Njoroge.

Safaricom PLC is listed at the Nairobi Securities Exchange, with a six-month volume-weighted average share price of approximately KES27.50, giving the company a market capitalization of about KES1.158 trillion (US$8.979 billion).

 

Under the proposed sale to Vodacom Group, the National Treasury will divest 15 percent of Safaricom (about 6 billion shares), while retaining 8,012,758,380 shares, or 20 percent. 

Upfront payment

Overall, the sale is expected to generate roughly Sh204.3 billion (US$1.5 billion) based on a Sh34 share price. This is a 17 per cent premium over the six-month average. 

Vodacom Group is expected to make an upfront payment of KES40.2 billion (US$309 million) in lieu of future dividends from the government’s remaining stake. 

The National Treasury has earmarked the proceeds to support critical infrastructure projects in energy, roads, aerospace, water and digital transformation. The earnings will also go into fiscal plans to help reduce reliance on debt, expand fiscal space, while also shifting the government’s role in the industry to policy and regulation. 

The government also states that this move will enhance Safaricom’s competitiveness within a more market-driven ownership structure. 

In readiness for the sale, the Government of Kenya (GOK) has secured a number of agreements with Vodacom Group to ensure uninterrupted business in Safaricom PLC's value chain and ecosystem post sale. These guarantees are:-

1. No employee redundancies are declared by the Company other than in the ordinary course of business;
2. Support the continued existence and operation of each of the Safaricom Foundation and M-Pesa Foundation, charitable foundations established by the Company; and
3. Prior to supporting any expansion outside Kenya (excluding any existing operations outside of Kenya), consult with the GOK in respect of such expansion, prior to such expansion, provided that the GOK’s consent shall not be required for VKL’s support of any expansion.
4. The Chairman and the Chief Executive Officer of the Company shall at all times be citizens of Kenya;
5. There are no changes to the executive committee of the Company as constituted on the Signature Date without the consent of the Chief Executive Officer; and
6. There are no changes to the corporate brand of the Company, including, without limitation, any change to the “Safaricom” brand, name, trademarks, logos or associated get-up;
7. There are no significant changes to local suppliers within the next three years following the Signature Date, other than in the ordinary course of business; and
8. All trustees of the Safaricom Foundation and the M-Pesa Foundation or any future foundations established by the Company shall be citizens of Kenya and all funds of such foundations shall be utilised for projects in Kenya.
9. No action or decision contemplated in paragraphs (1) to (6) (inclusive) shall be undertaken, implemented, recommended, approved or proposed (whether by the Board, any committee of the Board, any shareholder of the Company, or management) without the prior written consent of the GOK.

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