Safaricom PLC headquarters in Westlands, Nairobi.
Stockbrokers are urging Parliament to approve the sale of 20 per cent of the government’s stake in Safaricom PLC to the public, a move projected to raise total government revenue from the transaction to about Sh312 billion.
The Kenya Association of Stockbrokers and Investment Banks (Kasib) and the Fund Managers Association (FMA) argue that selling an additional five per cent, on top of the planned 15 per cent divestiture to South African telecommunications firm Vodacom, could generate an extra Sh68 billion.
Through Sessional Paper No. 3, the government is seeking Sh204 billion ($1.57 billion) in gross proceeds from the sale of a 15 per cent stake in Safaricom, at a premium of 23.6 per cent above the six-month volume-weighted average price as at December 2, 2025. Under the plan, the government intends to sell six million Safaricom shares to Vodacom at Sh34 each. The 15 per cent stake earmarked for sale is currently valued between Sh280 billion and Sh300 billion.
The move to reduce government shareholding in State-linked enterprises follows the enactment of the Privatisation Act, 2025, which came into effect on October 21, 2025. The National Treasury has already entered into an agreement to sell 15 per cent of its 35 per cent stake in Safaricom to Vodacom at Sh34 per share.
Appearing before Parliament, Kasib and FMA officials said a further five per cent sale to the public would boost proceeds by Sh68 billion.
Kenya Association of Stockbrokers and Investment Banks Chief Executive Willie Njoroge.
Kasib Chief Executive Willie Njoroge told MPs that combined, the sales could raise total revenue to about Sh312 billion, up from the initially projected Sh204 billion.
Mr Njoroge and FMA CEO Fred Mburu recommended proceeding with the 15 per cent strategic sale to Vodacom first, followed by a five per cent public offering on the Nairobi Securities Exchange (NSE).
“The additional five per cent public offering would generate around Sh68 billion based on the Sh34 pricing, bringing total government revenue to approximately Sh312 billion. This represents a 28 per cent increase in fiscal mobilisation from the same divestiture decision,” Mr Njoroge said.
He added that offering shares to the public would allow ordinary citizens, pension funds, insurance companies, and local and international institutional investors to participate in ownership of the national asset. “This promotes wealth democratisation, economic participation, financial inclusion, and fosters national pride and stakeholder buy-in,” he said.
Mr Njoroge noted that Kenya’s capital markets have experienced declining activity in recent years. A five per cent Safaricom public offer, he said, would boost market liquidity, attract domestic and regional institutional investors, and signal government commitment to capital markets development. It could also create positive sentiment for future IPOs, increase Safaricom’s free float, and potentially improve its index weightings.
Under the proposed shareholding structure, Vodacom would hold 55 per cent, the government 15 per cent after divesting a total of 20 per cent, and public shareholders 30 per cent following the additional five per cent public offer.
Kasib and FMA recommended that reserved allocations be made for retail investors, with priority for Kenyan citizens and institutions, employee ownership programmes, and pension fund participation through a transparent book-building process.
National Assembly Committee on Finance and National Planning Chairperson Kuria Kimani.
The proposal is under review by a parliamentary committee jointly chaired by Molo MP Kuria Kimani and Balambala MP Abdi Shurie, which is conducting public participation on the planned partial divestiture of the government’s Safaricom stake.
Currently, the National Treasury owns 35 per cent of Safaricom, Vodacom South Africa holds 40 per cent, and free-float shareholders own 25 per cent. The Privatisation Act, 2025, requires Cabinet Secretary for the National Treasury to consult the public before identifying State-owned entities for privatisation and mandates Cabinet and National Assembly approval before implementation.
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