Residents fear Safaricom sale money may be lost

Mpesa agent shop serving a customer in Nairobi on November 16, 2020. [Jonah Onyango, Standard]

Residents of Nakuru County have expressed mixed reactions to the government’s proposed sale of its Safaricom shares, with many demanding transparency and proper use of the proceeds.

Speaking at Kampi ya Moto during a public participation forum, they said they expect the money to be used in development projects.

Eddy Odongo welcomed the plan, saying it would help reduce the government’s reliance on borrowing. 

However, not all residents agreed with the proposal. Festus Lumumba argued that the amount to be raised was small compared to the value of the asset.

He said that if the shares must be sold, priority should be given to local investors rather than foreign companies.

Lumumba also raised concerns over a lack of a clear legal framework for public participation, calling for the fast-tracking of the Public Participation Bill currently before Parliament.

Stephen Bett, a member of the Ogiek community, expressed scepticism, expressing fear that the proceeds could be lost to corruption.

John Maina said he supports the sale of the government’s shares in Safaricom but emphasised the need for prudent utilisation of the funds.

He noted that local communities.

Joseph Kamau from Visoi Ward also backed the proposed sale, echoing calls for accountability in the management of the funds raised.

Nelson Mandela, another resident, said he supports the sale, citing the need for alternative financing for national development.

He urged Members of Parliament to ensure the funds reach citizens and are not diverted for political campaigns.

The locals were speaking in Kampi ya Moto, in Nakuru County, during a public participation forum. Several MPs, including Molo MP Kuria Kimani, who chairs the Finance and National Planning Committee in the National Assembly, were in attendance.

The government says the sale is intended to raise funds for infrastructure projects such as roads, electricity, water, airports, and other public works. The move is also aimed at reducing public debt by avoiding additional borrowing and tax increases.

The government plans to sell 15 percent of its 35 percent stake in Safaricom, retaining 20 percent ownership. If the sale succeeds, Vodacom’s shareholding would increase to 55 percent.

The shares will be sold through a negotiated transaction at Sh34 per share, above the recent market average of about KSh 29.50 per share as at January 30, 2026, ensuring the government receives a premium price.

The transaction is expected to raise approximately Sh204 billion in immediate cash. In addition, the government will receive an advance of Sh40 billion against future dividends from the remaining shares. About Sh55 billion will be repaid over six years using dividends, after which the government will continue to receive full dividend income.

According to the proposal, the sale will not affect Safaricom services such as calls, internet, or M-Pesa. Kenyan shareholders will retain their shares, and Vodacom has committed that there will be no job losses related to the acquisition for at least three years.

Safaricom will retain a Kenyan chairperson and independent directors, while the government will keep two seats on the board to protect national interests. Vodacom will also continue supporting the Safaricom Foundation.

The proposal must be approved by the National Assembly and comply with all legal requirements. The government says public participation and parliamentary oversight will be part of the process to ensure transparency and accountability.

The government has clarified that it is not selling Safaricom as a company, but only part of its shareholding.

Kuria noted that physical meetings are not done in isolation.  He said there is a QR code provided where locals can give their views online. 

He said the decision of the people will also be represented by elected leaders on the floor of the house. He said they expect MPs across the country to continue engaging people.