Nairobi — Members of Parliament have revised the government's proposal to partially divest its stake in Safaricom PLC, introducing new safeguards to protect employees and business partners as the State moves forward with the multibillion-shilling transaction.
A joint report tabled in the National Assembly on Tuesday by the Departmental Committees on Finance chaired by Molo MP Kimani Kuria and Public Debt chaired by Balambala MP Omar Shurie revised several elements of the plan to divest part of the government's shareholding in the telecom giant.
The government intends to offload up to 15 percent of its current stake in the company to strategic investor Vodacom Group.
The joint parliamentary team, introduced safeguards aimed at preventing potential job losses that had been raised as a key concern during scrutiny of the proposal.
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In the original framework, the agreement only guaranteed that existing staff would not be laid off for three years after the transaction. Legislators have now strengthened the provisions to ensure the restructuring does not lead to redundancies among the company's workforce.
While presenting the report to the House, Shurie said the committees had examined Sessional Paper No. 3 of 2025 and recommended that Parliament adopt it with the proposed amendments.
"I beg to give notice of the motion that this House adopts the joint report of the departmental committees on Finance and Public Debt on the consideration of Sessional Paper No. 3 of 2025 on the partial divestiture of Safaricom by the Government, laid on the table of the House on March 10," she said.
Lawmakers also directed the National Treasury to ensure the company's current operational structure remains intact, cautioning against changes that could disrupt the extensive network of dealers, agents and other partners linked to the firm for at least the next decade.
According to the report, the Treasury will complete the transaction through a block trade arrangement on the Nairobi Securities Exchange once regulatory approvals and share pricing agreements are finalised.
Under the plan, the government will sell about six billion shares, equivalent to 15 percent of Safaricom, at an estimated price of Sh34 per share. The transaction is projected to generate about Sh204 billion.
In addition, the State is expected to receive an upfront payment of approximately Sh40 billion representing advance compensation for future dividend rights tied to the remaining government shares.
Parliament has recommended that the funds raised from the sale be channelled into the National Infrastructure Fund to finance major development projects.
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The committees emphasised that despite the partial divestiture, Safaricom will continue to be regarded as a Kenyan company even as Vodacom increases its strategic involvement. The government currently owns roughly 35 percent of the telecommunications firm.
However, the proposal has drawn criticism from some opposition leaders who argue that Safaricom plays a critical role in digital and financial infrastructure through services such as M-Pesa and government-linked digital platforms, making its ownership structure a matter of national interest.
