Members of the National Assembly on Thursday questioned Treasury Principal Secretary Chris Kiptoo about the government's rush to sell its shares in Safaricom to the South African telecom company Vodacom, despite the absence of a legal framework to protect the proceeds.
The MPs also demanded to know whether an independent valuation had been conducted for the proposed sale.
The lawmakers expressed concerns that, without a legal framework for the Infrastructure Fund, the proceeds from the sale of shares would be deposited in the Consolidated Fund and could be diverted to recurrent expenditure.
The government, through Sessional Paper 3, seeks to generate approximately Sh204 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 National Treasury is seeking to sell six million shares in Safaricom to South African telecommunications firm Vodacom at Sh34 per share.
The government currently owns 35 percent of Safaricom shares whose current market value is estimated to be between Sh280 billion and Sh300 billion. Vodacom owns 40 percent of Safaricom shares and the transaction will take its shares to 55 percent.
The National Assembly has 28 days from December 2025 to either approve, reject or amend the Sessional Paper which will take effect from March 26, 2026.
The MPs expressed fears that the passage of the Sessional Paper on partial divestiture of government shares in Safaricom without Parliament approving the Infrastructure Fund Act will expose the proceeds of the sale to misallocation.
Finance and National Planning committee chairperson Kuria Kimani, whose committee processed the Sessional Paper, said the biggest concern on the partial divestiture is how Parliament will guarantee that the money will go towards funding infrastructure projects in the absence of a legal framework.
“If the money went to the Consolidated Fund as required by the Constitution as Article 206, are we as Parliament able to trace this expenditure,” asked Teso South MP Mary Emmase.
Kitui South MP Rachael Nyamai demanded to know why the government had not tabled a Bill on the establishment of the Infrastructure Fund to ensure the money is ring-fenced. “We have the debt and pending bills which takes priority in spending. This money could be diverted to pay this pressing need, including salaries and debt,” she said.”
Dr Kiptoo told lawmakers that the Treasury had created the Infrastructure Fund as a limited liability company to receive the proceeds of Safaricom shares sale.
“We thought we could use the Companies Act to set up the Infrastructure Fund quickly as a limited liability company and have Parliament approve the instrument. We are amenable to any proposals that you may have because we know that there is an ongoing public participation on the partial divestiture of government shares in Safaricom,” Dr Kiptoo said.
“We will do further consultations quickly and see how to address the matter as to whether we have a law before passing the sessional paper on divestiture.”
Suba South MP Caroli Omondi demanded to know whether there was an independent market survey done before the government moved with the divestiture of its Safaricom shares.
Machakos Woman Representative Joyce Kamene demanded the methodology that was used to arrive at Sh34 per share.
Majority Leader Kimani Ichung’wah sought to know if there were other pathways for partial divestiture of Safaricom.
“Tell Kenyans if there is anybody with an alternative pathway that can deliver higher value, are you opposed to it?” Mr Ichung’wah asked.
Dr Kiptoo said the National Treasury would welcome any option that would enable Kenyans to get better value than the value it has got from ceding 15 percent in Safaricom.
When he appeared before the joint parliamentary committee considering the sessional paper, National Treasury Cabinet Secretary John Mbadi said that proceeds from the sale of the shares will only be used to finance commercially viable infrastructure projects.
State agencies have already submitted a list of viable projects that the Sh204 billion proceeds that the government will get from the partial sale of its shares of Safaricom to Vodacom will be invested in
“The proceeds of the sale of Safaricom shares will be exclusively used to de-risk and lower the cost of infrastructure projects. I have already established the National Infrastructure Fund Limited where I am the sole shareholder,” Mr Mbadi told the lawmakers.
“This money is not going to fund our budget, it is not going to be used to fill our fiscal deficit, not to pay pending bills nor capitation. This money is going to be used exclusively on commercially viable projects."
The funds, according to the CS, will also go towards the Energy sector where it will be used to fund generation and transmission of economically viable power.
