Nairobi — The National Assembly has officially initiated the public participation process for the government's plan to sell a 15% stake in Safaricom PLC.
This proposed partial divestment, contained in Sessional Paper No. 3 of 2025, is expected to raise approximately Sh244.5 billion but has drawn sharp criticism regarding potential undervaluation and lack of transparency.
A joint committee of Finance and National Planning and the Public Debt and Privatization Committee are inviting memoranda from all interested parties including shareholders, customers, employees, regulators, and the public.
"Now therefore, in compliance with Article 88(1)(b) of the Constitution, the Clerk of the National Assembly hereby invites the public and stakeholders, including shareholders, management, employees, customers, regulators and interested parties to submit memoranda on the Sessional Paper to the Departmental Committee on Finance and National Planning and the Public Debt and Privatization Committee," read the notice.
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The government intends to sell 6 billion shares, which represents 15% of its current ownership, while retaining a strategic 20% stake in the telecommunications giant.
The sale is projected to raise Sh204.3 billion based on a proposed share price of Sh34.
Additionally, Vodacom Group is expected to provide an upfront payment of Sh40.2 billion in lieu of future dividends, bringing the total expected mobilization to Sh244.5 billion.
The Treasury argues the partial sale will mobilize non-tax revenue to fund critical infrastructure projects in sectors such as energy, roads, water, aerospace, and digital transformation.
It aims to expand fiscal space, reduce reliance on debt, and enhance Safaricom's competitiveness under a more market-driven ownership structure.
Despite the divestment, the government maintains it will retain significant influence, including two board seats and necessary oversight mechanisms to safeguard national interests.
The expected buyer, Vodacom Group, has committed to maintaining Kenyan leadership at the board level, supporting the Safaricom Foundation, and avoiding redundancies for at least three years.
Undervaluation Concerns
The proposed sale has triggered significant political and public backlash, centered on the belief that the government is rushing the deal and selling a prized national asset below its true value.
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Critics, including Kiharu lawmaker Ndindi Nyoro, labeled the deal reckless, accusing the government of incompetence or self-interest.
Nyoro pointed out that the proposed Sh34 per share undervalues the company significantly, especially when compared to its Sh45 per share trading price in 2021.
He calculated the proposed sale results in a valuation below Sh1.4 trillion, representing a 24% discount from the 2021 valuation.
"The Government is underselling Safaricom & should reconsider. The valuation is grossly bad for Kenya. Safaricom shares were trading at Sh45 in 2021, valuing the company at Sh1.8 trillion," he stated.
"Now, the government of Kenya is selling at Sh34 per share, with a valuation below Sh1.4T. A 24% discount from the 2021 valuation. Either there was self-interest or incompetence in negotiating for a better deal for Kenyans."
Former Deputy President Rigathi Gachagua condemned the sale, framing it as part of a broader policy by President Ruto's administration of selling everything that works without public consultation, citing Kenya Ports Authority and Kenya Pipeline as other examples.
"The country is being sold every day. Safaricom has been one of the greatest revenue generators for our country, about Sh18 billion to Sh20 billion every year. Now one share is sold for Sh34, whereas the real value is Sh70-80, so the country is losing around Sh250 billion," Gachagua stated.
"It is like having a high-yielding cow at home. This cow provides milk for your children, but you sell it and have nothing to feed them. You eat the food, but you have no cow left to milk," he added.
