Parliament invites public views on Safaricom share sale amid outcry

Majority Leader Kimani Ichung'wah urges anyone with substantive information on the government plans to sell stake in Safaricom to appear before the Finance and National Planning Committee. [File, Standard] Parliament has now invited Kenyans to submit memoranda on government plans to sell a stake in Safaricom, setting the stage for the public participation. Clerk of the National Assembly, Samuel Njoroge said that this is in accordance with the Article 118(1)(b) of the Constitution, which requires Parliament to facilitate public participation and involvement in the legislative and other businesses of Parliament. National Treasury Cabinet Secretary, James Mbadi has already submitted Sessional Paper No 3 of 2025 on partial divestiture in Safaricom PLC to the National Assembly, which has ultimately been referred to Departmental committees on Finance and National Planning and Public Debt and privatisation, for consideration and reporting to the House. The Government is seeking to sell a 15 per cent stake in Safaricom PLC, with the exercise expected to raise over Sh244.5 billion, a situation that has caused divided opinion, amid concerns of potential undervaluation and lack of transparency. "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," Njoroge, said in a notice yesterday. Njoroge said that Safaricom PLC is a listed company at Nairobi Securities Exchange with an actively traded counter whose volume weighted average price over the six months ending up to December 2 was approximately Sh27.50 per share, resulting in a market capitalisation of approximately Sh1.158 trillion. He explained that the Sessional paper seeks to facilitate mobilisation of resources to be allocated to critical infrastructure development. According to the Clerk, the proposed partial divestiture aims to divest the Government's over 6 billion shares, equivalent to 15 per cent of Safaricom PLC and the Government shall retain 8 billion shares equivalent to 20 per cent of Safaricom. The sale is expected to raise Sh204.3 billion based on a proposed share price of Sh34, which represents a premium of 17 per cent on the six month weighted average price of Safaricom shares, which will enable the Government to realise optimal value from its investment. The move will also see securing of upfront payment of Sh40.2 billion by Vodacom Group to the Government in lieu of future dividends, which will accrue to the Government on its residual 20 per cent shareholding in Safaricom. "The proposed partial divestiture aims to mobilise non-tax revenue to support the Government deliver priority infrastructure development in critical sectors including energy, roads, aerospace, water and digital transformation, reduce reliance on debt and expand fiscal space for development priorities," Njoroge explained. The Clerk explained that the move will seek to reinforce Safaricom's competitiveness and growth trajectory through sale of its divested stake to Vodacom Group, which currently holds 40 per cent of Safaricom PLC and is said to have regional experience and a track record in capital investment, digital infrastructure, innovation and financial inclusion. The memoranda are to be forwarded to the Clerk of the National Assembly by January 8, 2026. However, there have been dissenting voices over the matter, with Kiharu MP, Ndindi Nyoro saying the share price is 'grossly undervalued', given the fact that it was at Sh45 in 2021 at a valuation of Sh1.8 trillion. "We need a robust public participation on the sale of Safaricom because the way we are selling it, at Sh34 per share is undervalued and it will be a gross injustice to Kenyans when the National Treasury and Government undersells such a priced asset and goes even further trying to securitise dividends that will come at future revenue from Safaricom," Nyoro said. Beyond consideration, he said that Government is asking for dividends in advance, noting that the issue of seeking political claps by securitising future revenue must be stopped because Kenya is a going concern and the revenue will still be needed in the future. But the Leader of Majority, Kimani Ichung'wah accused Nyoro of misleading Kenyans and speaking of issues even before the Sessional Paper was tabled. Ichung'wah said that anyone with something substantive that will educate and inform Kenyans as well as add value to the process they should appear before the committees tasked with this exercise saying there is adequate time for public participation. "If you have something to educate Kenyans, take your time to appear before the Finance and National Planning committee, table your facts. The facts will speak for themselves when it comes to the time Government is divesting, whoever is buying the shares and at how much... only last year, Safaricom shares were trading at Sh17," Ichung'wah uttered. "We invite Kenyans to have their say and we reason together for the sake of the country, let us not allow bitterness and desire for revenge to override common sense and logic," he added. Separately, Wiper leader Kalonzo Musyoka and former Deputy President Rigathi Gachagua have accused President William Ruto of authorising the sale of Safaricom shares without public participation. Kalonzo and Gachagua claimed that Kenyans stand to lose more than Sh250 billion in the transaction, arguing that the value of the shares has been underquoted, with a single share being sold at Sh34 despite a market value of about Sh70. They alleged that powerful individuals are seeking personal gain from the controversial deal and threatened to seek legal redress. Kalonzo said the opposition has assembled a team of advocates who will file a petition to halt the sale of Safaricom Limited. He argued that the sale was clearly intended to deprive Kenyans of their rightful wealth. "We have a team of over 100 advocates who are going to file a serious petition challenging the sale of the government stake in Safaricom Limited, since it is being conducted without public participation and it is apparent someone is going to benefit from this shady deal worth billions of shillings," he said. Gachagua said: "Public participation is enshrined in the constitution as a fundamental pillar of democracy, fostering more informed and sustainable decision-making by incorporating diverse public input," Gachagua said. He insisted that the corruption-driven sale of vital public assets is not only irresponsible on the part of the government but also a clear violation of the Public Procurement and Disposal Act, adding that Kenyans are now aware and actively taking stock of all acts of misappropriation.

Parliament invites public views on Safaricom share sale amid outcry

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