MPs pave way for Treasury to receive Sh240bn from Safaricom share sale
The MPs, in an acclamation vote, approved the sale of government shares in the profitable telco despite protests from Suba South MP Caroli Omondi.
Parliament has formally approved the sale of Safaricom shares to South Africa's Vodacom company, paving way for the national Treasury to receive Sh240 billion.
The National Assembly on Tuesday unanimously approved the report of the joint committee on Finance and National Planning and Public Debt and Privatisation on Partial Divestiture of government shares in Safaricom.
This means that the Treasury, effective April 1, 2026, or such later date when all regulatory approvals and preconditions of the Share Purchase Agreement, will complete the transaction through the Block Trade Platform of the Nairobi Securities Exchange.
With the House approval, the Treasury can now proceed to offload 15 percent government stake in Safaricom in a transaction that will raise Sh200 billion.
The MPs, in an acclamation vote, approved the sale of government shares in the profitable telco despite protests from Suba South MP Caroli Omondi who drew the attention of Speaker Moses Wetang’ula on an active matter in court on the sale of the shares.
Mr Omondi rose on a point of order and asked the Speaker to determine whether the House could proceed to approve the sale when there is an ongoing case on the proposed sale in court.
Mr Wetang’ula, however, ruled out Mr Omondi saying the National Assembly is not party to the case in court and that nobody can injunct Parliament from exercising its legislative mandate.
He said anybody, including MPs, has a right to go to court to challenge the decision of the House and directed Homa Bay MP Peter Kaluma to move a reply on the motion to adopt the joint report on behalf of the joint chairpersons for Finance and Privatisation committees Kuria Kimani and Abdi Shurie respectively.
The two chairpersons were absent from the House.
Speaker Wetang’ula proceeded to put the question where lawmakers voted through acclamation to approve the partial sale of government shares in Safaricom.
“That, this House adopts the Joint Report of the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee on the consideration of Sessional Paper No 3 of 2025 on Partial Divestiture in Safaricom PLC by the government of Kenya, laid on the Table of the House on Tuesday, March 10, 2026 and— resolves that, pursuant to the provisions of section 87(A) of the Public Finance Management Act, Cap. 412A, the House approves the Sessional Paper No 3 of 2025 on Partial Divestiture of Safaricom PLC by the government of Kenya, and further resolves as follows-the effective date for the approval shall be April 1, 2026 or such later date when all regulatory approvals that form condition precedent in paragraph 4.1 of the Share Purchase Agreement shall have been obtained,” Mr Wetang’ula said.
The report, which MPs approved on Tuesday, 31 March 2026, will see the government receive Sh40.2 billion in upfront payments made by Vodacom in lieu of future dividends.
The House also approved a raft of recommendations, including protection of existing staff from sacking.
The National Treasury Cabinet Secretary John Mbadi is required to ensure that within 10 years of the divestiture, there will be no material change to the current shared prosperity business model in Safaricom that would prejudice the existing Safaricom dealers, agents and other business partners
“The National Treasury Cabinet Secretary should upon obtaining all the regulatory approvals in line with condition precedent in paragraph 4.1 of the share price agreement, undertake and complete the transaction through the block trade platform on Nairobi Securities Exchange (NSE).”
The joint committee, in the report also recommended the up-front payments be made in lieu of future dividends that the government will receive Sh40 billion and Sh200 billion, which brings the total to Sh240.2 billion.
“That notwithstanding anything contained in the share purchase agreement and dividend purchase agreement, the proceeds of the divestiture will be paid into the National Infrastructure Fund (NIF),” the report, initially tabled by Mr Shurie said.
The government, through Sessional Paper No 3, is seeking to generate approximately Sh240 billion ($1.57 billion) in gross proceeds through the divestiture of 15 percent stake in Safaricom at a premium of 23.6 percent to the six-month volume weighted average price ended December 2, 2025.
The government is seeking to sell six million shares through partial divestiture of government shares Vodacom at Sh34 per share.
The Treasury is seeking to offload 15 percent of the government shareholding in the cash rich telecommunication firm.
Full dividends
The government currently owns 35 percent of Safaricom shares whose current market value is estimated to be valued at between Sh280 billion and Sh300 billion. Vodacom owns 40 percent of Safaricom shares and the transaction will take its shares to 55 percent.
In addition, the government will receive an advance payment of Sh40.2 billion against future dividends from the remaining 20 percent shares.
The government will repay about Sh55 billion over six years using dividends from the unsold shares. After this period, the government will continue to receive full dividends.
Vodacom had committed that the transaction will not result in acquisition-related job losses for a period of three years.
Safaricom will retain a Kenyan chairperson and independent directors. Vodacom has committed to continue supporting the Safaricom Foundation.
Following the approval of the report, the government will retain two seats on the Safaricom Board to safeguard national interests, ensure continuity in governance, and preserve Kenya’s digital heritage and leadership in innovation.
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