The Lower Eastern Times Opening The Third Eye
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The National Assembly has given the green light for the government to partially sell its shares in Safaricom to Vodacom, in a deal projected to raise about Sh240 billion for infrastructure development.
On Tuesday, MPs adopted a joint report by the Departmental Committee on Finance and National Planning together with the Public Debt and Privatisation Committee, authorising the government to dispose of a 15 per cent stake in the telecom giant.
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The approval allows the National Treasury to move ahead with the transaction from April 1 or at a later date once all regulatory requirements outlined in the agreement are fulfilled.
The deal is expected to bring in approximately Sh200 billion from the share sale, alongside an additional Sh40.2 billion in upfront payments in place of future dividends. The funds will be directed to the National Infrastructure Fund to finance major development projects.
However, the move sparked debate in the House, with Suba South MP Caroli Omondi raising concerns over a pending court case challenging the transaction. He questioned whether Parliament should proceed while the matter is still under judicial consideration.
National Assembly Speaker Moses Wetang’ula dismissed the concerns, stating that Parliament is not a party to the case and therefore cannot be restricted from carrying out its constitutional duties.
Majority Leader Kimani Ichung’wah also rejected the objections, noting that the issue had already been discussed and opposed during earlier debates in the House.
A joint parliamentary committee had previously reviewed and approved the proposal, setting conditions to protect public interest. These include safeguarding jobs, maintaining Safaricom’s current business model, and ensuring data protection under existing cyber laws.
The committee also confirmed that the agreed share price reflects prevailing market conditions and recommended that part of the payment be made upfront, with all proceeds reserved for infrastructure development.
Meanwhile, Safaricom has defended the deal in court, insisting it is legal and subject to regulatory oversight. The company warned that halting the transaction could disrupt financial markets and dent investor confidence.
If finalised, the deal will raise Vodacom’s stake in Safaricom from 40 per cent to 55 per cent, giving it majority control, while the government’s shareholding will drop from 35 per cent.
