AG, Treasury CS Mbadi to be grilled by MPs over Safaricom sale

National Treasury Cabinet Secretary before the Departmental Committee on Finance and National Planning at Bunge Towers, Nairobi, on November 18, 2025. [Elvis Ogina, Standard]  

Attorney General Dorcas Oduor and National Treasury Cabinet Secretary John Mbadi are set to appear before lawmakers on Tuesday to defend the government’s controversial Sh244 billion sale of a stake in telecoms giant Safaricom to South Africa's Vodacom, as a major parliamentary probe into the transaction begins. 

The hearings, launched on Monday by two parliamentary committees, will scrutinise the December deal that saw Vodacom Group acquire a 15 per cent stake from the Kenyan government and a further five per cent from Britain’s Vodafone Group, giving it a controlling 55 per cent interest in East Africa's most profitable company. 

A schedule released by Parliament shows the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation will grill senior officials from the Treasury and the Attorney General’s office at the inquiry hearings to be held in Kiambu County.  

The top government officials are expected to face tough questioning from MPs on the deal's valuation, structure, and implications for national interests. 

Treasury has consistently defended the partial divestiture as a cornerstone of President William Ruto’s strategy to raise funds for infrastructure and reduce public debt without increasing taxes. 

The transaction raised a total of Sh244.5 billion, including payment for future dividend rights. 

Treasury previously said the deal was conducted transparently and at a "significant premium" to the market price, providing "much-needed liquidity for the Exchequer."  

The Attorney General’s office is expected to outline the legal framework and approvals underpinning the sale. 

However, the broad scope of the nine-day inquiry, with over 40 entities slated to testify, signals deep unease among legislators and stakeholders. 

Critics argue the sale undervalues Safaricom’s future growth potential, particularly from its expansion into Ethiopia and its dominant M-Pesa fintech platform, where revenue grew 14 per cent in the last half of 2025.

“The State has moved from a powerful blocking minority to a more passive investor, just as the company stands on the cusp of its next major phase of creating value,” a Nairobi-based analyst, who asked not to be named, told The Standard earlier. 

Financial experts, including the Association of Stockbrokers of Kenya and the Institute of Economic Affairs, are scheduled to testify later in the hearings and are expected to question the valuation methodology. 

Analysts including Deepak Dave of Riverside Advisory have previously labelled it a "bad deal," arguing it cedes full control and future lucrative options like a potential M-Pesa spinoff to Vodafone-Vodacom. 

Other major concerns centre on reduced government oversight of M-Pesa, a de facto national payments system previously flagged by regulators as a potential systemic risk.  

The Communications Authority of Kenya and the Competition Authority of Kenya are also scheduled to testify later this week. 

Also on Tuesday, the committees will hear from market regulators, including the Capital Markets Authority and the Nairobi Securities Exchange. 

Later sessions will feature advisory firms involved in the transaction, rival telecom operators, and civil society groups like Transparency International Kenya. 

The outcome of the hearings could influence parliamentary sentiment as the deal still awaits final regulatory approvals in Kenya, Ethiopia, and South Africa. Closure is expected in the first quarter of 2026.