NAIROBI, Kenya — Parliament has approved the proposed sale of a 15pc government stake in Safaricom PLC to Vodacom Group in a deal valued at Sh204 billion, following a report by a joint parliamentary committee.
The report, tabled before the National Assembly by a joint committee comprising the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee, endorsed the divestiture but attached conditions aimed at protecting public interest.
Among the conditions set by lawmakers is a requirement that the transaction must not result in any job losses within Safaricom.
The proceeds from the sale are expected to support the newly created National Infrastructure Fund, which the government plans to use to finance large-scale development projects.
The proposal sparked a heated debate in Parliament, with Members of Parliament sharply divided over the valuation and the broader implications of the sale.
Ndindi Nyoro criticised the transaction, arguing that the government had undervalued the shares and failed to secure a fair deal for Kenyans.
“The deal was undervalued… Kenyans have been given a raw deal… The joint committee is incompetent,” Nyoro told the House during debate.
However, Kuria Kimani challenged the criticism, asking opponents of the deal to present an alternative valuation model.
“Ndindi, why can’t you give us an alternative model for valuation?” Kimani said.
National Assembly Majority Leader Kimani Ichung’wah also defended the proposal, accusing critics of misrepresenting the transaction to the public.
“Ndindi is moving around markets, misleading Kenyans,” Ichung’wah said.
But opposition lawmakers remained unconvinced. Caroli Omondi backed Nyoro’s concerns, saying the concerns raised about the deal were legitimate.
“Ndindi is right, and you who support this should stop misleading Kenyans,” Omondi said.
Makali Mulu also questioned the government’s intentions, warning that public trust in the administration remains fragile.
“This government cannot be trusted… I don’t know why Kalonzo Musyoka scares Ichung’wah so much… he keeps on mentioning him,” Mulu said during the debate.
Despite the political divisions, the joint committees maintained that the valuation process incorporated safeguards to protect taxpayer interests.
According to the report, the negotiated price of Sh34 per share aligns with prevailing market trends, and negotiating directly with Vodacom reduces execution risks while maintaining market stability.
Lawmakers also assured that consumer and personal data would remain protected under the Computer Misuse and Cybercrimes Act.
The committee further recommended that Safaricom’s estimated 855,000 direct jobs linked to the company’s ecosystem be safeguarded following the transaction.
Additionally, Vodacom is expected to pay an upfront dividend of Sh40.2 billion to the government as part of the deal structure.
The report also directed that all proceeds from the transaction be ring-fenced within the National Infrastructure Fund to ensure the money is exclusively used for infrastructure development projects across the country.
