NAIROBI, Kenya — Parliament will open public hearings in January 2026 on the government’s plan to sell 15pc of its stake in Safaricom to South Africa’s Vodacom group, a transaction expected to earn about Sh240 billion but already stirring controversy over valuation, accountability, and national strategic interest.
National Assembly Speaker Moses Wetang’ula on Wednesday directed the Finance and National Planning Committee and the Select Committee on Public Debt and Privatisation to begin hearings on January 18, 2026, after the National Treasury tabled the proposal in Sessional Paper No. 3.
The Clerk has also been instructed to invite public submissions for at least 30 days from December 8.
Wetang’ula said the early resumption from recess would allow adequate public participation, citing Safaricom’s significance as a government-linked company listed on the Nairobi Securities Exchange (NSE). The move signals heightened scrutiny of one of the most consequential corporate decisions in recent years.
Under the proposal, Vodafone Kenya—already the largest shareholder with 40pc, would increase its holding to 55pc. The sale involves 6,009,814,200 shares, while the government would retain a 20pc share amounting to 8,012,758,380 shares.
However, the deal has triggered pushback from lawmakers, led by Kiharu MP Ndindi Nyoro, who argues that the government is underselling one of Kenya’s most profitable companies.
“The government is underselling Safaricom and Kenyans are going on losses. The government is too lazy to grow the economy… and we are now looking for shortcuts,” Nyoro said, questioning the reliance on market price as the benchmark for sale.
Treasury Cabinet Secretary John Mbadi defended the divestiture as a strategic move to unlock capital for key infrastructure, noting that Kenya would receive the proceeds in US dollars—approximately $1.577 billion.
Vodacom is expected to make an upfront payment of Sh40.2 billion ($309 million), offsetting future dividends on the government’s remaining 20 per cent stake.
According to the Sessional Paper, Safaricom’s volume-weighted average share price over the six months to December 2, 2025, stood at Sh27.50, valuing the company at Sh1.158 trillion. The proposed sale price of Sh34 per share represents a 17pc premium, which the Treasury says reflects fair value for shareholders and the state.
The government maintains that the transaction will strengthen fiscal sustainability by supporting priority investments in roads, water, airports, and energy, while reducing debt pressures. Mbadi said the divestiture is designed to preserve national interests, noting the state will retain two board seats.
The paper further highlights that Vodacom has committed to no job cuts for three years, keeping Safaricom’s chair and independent directors Kenyan, and supporting the Safaricom Foundation. It also frames the sale as evidence of Kenya’s maturing capital markets and growing investor confidence.
But legislators warn that the sale touches a company central to Kenya’s digital ecosystem—spanning telecommunications, mobile money, cybersecurity, and financial inclusion—requiring careful oversight.
As hearings begin, lawmakers are expected to interrogate valuation metrics, the speed of the sale, implications for national security, and the role of foreign control in Kenya’s telecom sector. The proceedings are likely to shape political and public debate ahead of the 2027 elections, with Safaricom’s future firmly under the national spotlight.
