NAIROBI, Kenya — The Central Bank of Kenya (CBK) has backed the government’s plan to sell part of its stake in Safaricom, assuring Parliament that the transaction will not threaten the stability of the country’s financial system or compromise customer funds held through M-Pesa.
Appearing before a joint sitting of the National Assembly’s Finance and National Planning Committee and the Public Debt and Privatisation Committee on Tuesday, CBK Governor Kamau Thugge said the proposed deal poses no risk to the national payment system if existing safeguards are fully enforced.
“Formal CBK approval is still under assessment, but the proposed transaction will not compromise the integrity of the national payment system provided all prudential safeguards are enforced,” Thugge told the lawmakers.
The Governor emphasised that M-Pesa, Safaricom’s mobile money platform, remains financially resilient despite the ownership changes.
The service currently holds more than Sh250 billion in customer funds, which are ring-fenced and regulated under Kenya’s national payment systems framework.
Thugge also noted that proceeds from the sale could provide significant fiscal relief at a time of tight public finances.
He said the funds would help strengthen Kenya’s foreign exchange reserves, reduce reliance on domestic borrowing, and ease pressure on interest rates without increasing public debt.
Under the agreement signed by the National Treasury, the government plans to sell a 15 per cent stake in Safaricom to South Africa’s Vodacom Group at Sh34 per share, raising approximately Sh204.3 billion.
Vodacom, which currently owns 35 per cent of Safaricom, would increase its holding to 55 per cent after completing the purchase and acquiring an additional five per cent stake from its parent company, Vodafone Group.
Following the transaction, the government’s shareholding would drop to 20 per cent.
Despite CBK’s assurances, the proposed sale has sparked debate in Parliament, with some legislators questioning both the timing and valuation of the deal.
Former Budget and Appropriations Committee chairperson Ndindi Nyoro cautioned that while the sale may generate immediate revenue, it could expose the country to long-term financial losses.
“The day of the announcement, it came in wholesomely. Who determined that price? Who are these people who were hired?” Nyoro asked, warning that weak valuation and overly generous terms could cost Kenya billions of shillings.
He added that Safaricom’s strong financial performance should prompt caution.
“Safaricom is having blockbuster increments in profit. We are selling our cow just when it is coming out of the forest,” he said, calling for the transaction to be subjected to international scrutiny.
The government has defended the sale as part of a broader privatisation strategy aimed at unlocking value from state assets while easing fiscal pressure.
The transaction remains subject to regulatory approvals and parliamentary oversight before completion.
