Safaricom PLC headquarters in Westlands, Nairobi.
MPs are cutting short their Christmas recess to hasten the approval of the sale of government shares in Safaricom, underlining the determination to conclude the deal that will net Sh244.5 billion.
Sources say the early return for the National Assembly Committees on Finance and National Planning and Public Debt and Privatisation has come at the request of the Executive, which hopes to finalise the sale of the 15 per cent stake in the telco by the end of the first quarter of 2026.
While other committee meetings are suspended until January 26, National Assembly Speaker Moses Wetang’ula allowed the two to begin deliberations before the resumption of sittings.
For a committee to sit outside the House calendar, it must get permission from the Speaker. This happens when lawmakers are considering matters with strict constitutional timelines.
Speaker of the National Assembly Moses Wetang’ula at the chambers.
“The earlier resumption of their sittings shall allow the committees to conduct extensive public participation and obtain the views of the affected stakeholders. Safaricom is a government-linked company listed on the Nairobi Securities Exchange,” Mr Wetang’ula said.
“The committees are urged to expeditiously submit their report to the House at the conclusion of the public hearings.”
The government is required to get a nod from MPs when selling public assets. The National Treasury CS, however, retains powers to originate the privatisation.
The minister identifies and determines the entities to be sold, before putting the proposal to the Cabinet for scrutiny and approval.
Last month, the government reached an agreement to sell a 15 per cent stake in Safaricom to South Africa’s Vodacom Group for a consideration of Sh204.3 billion, or Sh34 for each of the six billion shares to be offloaded.
Vodacom is also buying a five per cent stake in Safaricom currently held by its British parent Vodafone Plc, at the same price of Sh34 per share for a total consideration of Sh68.1 billion.
After the two transactions, the state will retain a 20 per cent stake in the telco, while Vodacom’s holding will rise from 35 to 55 per cent, giving it control of Kenya’s largest listed company.
Vodacom is expected to pay the government an upfront dividend of Sh40.2 billion on its remaining 20 per cent stake, to be recouped in form of future dividend payments valued at Sh55.7 billion.
The proceeds of the sale and the dividends are to go into the recently approved Infrastructure and Sovereign wealth funds.
The Safaricom deal, the establishment of the funds and the Budget Policy Statement (BPS) top the list of issues MPs are to consider in the early months of this year.
No public participation
The Finance and National Planning Committee is responsible for investigating and inquiring into matters relating to the management, activities, administration, operations and estimates of ministries and departments.
The Finance and Public Debt Committees will consider the establishment of the two funds, which President William Ruto intends to use to attract private investment, reduce reliance on loans and finance projects in transport and energy.
The Cabinet has approved the National Infrastructure Fund as a limited liability company.
The proposed sale of the Safaricom stake has raised concerns over the valuing of the shares, which were priced at a 15 per cent premium to the prevailing market price at the time of announcement.
National Treasury CS John Mbadi has defended the pricing.
National Treasury Cabinet Secretary John Mbadi.
“This is the direction the country should take. We need bold decisions,” he said last month.
The opposition has threatened to challenge the divesture in court, arguing that there was no public participation and that it threatens Kenya’s wealth.
Democratic Action Party-Kenya leader Eugene Wamalwa did not respond to our inquiry on the filing of the case.
The National Assembly and Senate Energy Committees are also expected to consider the oil exploration deal in Turkana County between the government and Gulf Energy E&P BV.
Documents outline the proposed commercial development of six oil discoveries in the South Lokichar Basin, covering infrastructure plans, environmental safeguards, community obligations and projected national benefits. Gulf Energy E&P BV is to develop the blocks previously held by Tullow.
“The committees are encouraged to convene joint sittings for the examination of the contracts as well as the views that will ensue from public participation. This will ensure consistency, eliminate redundancy and promote an informed bicameral approach in the process,” Mr Wetang’ula said.
The Energy Committee is required to submit its report to the House by February 17.
The Budget and Appropriation panel starts the budget cycle of the 2026/27 Financial Year next month, with the consideration of the BPS.
President Ruto will be keen on the operations of the committee as he seeks to finance his pet projects to completion before the General Election in 2027.
The committee is important to any administration as it has the powers to investigate, inquire into and report on matters relating to coordination, control and monitoring of the country’s budget.
It also discusses and reviews budget estimates, makes recommendations and examines bills related to the budget. The committee evaluates tax estimates, economic and budgetary policies and programmes with direct outlays. It also examines the division of revenue.
In his New Year Message, Mr Wetang’ula said the House would prioritise critical issues aimed at improving livelihoods and strengthening the country’s economy.
