Kenya: Parliament Okays Sh240b Safaricom Share Sale to Vodacom

Nairobi — The National Assembly has approved the government's partial divestiture from Safaricom, paving the way for the State to offload part of its stake through the Nairobi Securities Exchange effective April 1, 2026.

The transaction, outlined in Sessional Paper No. 3 of 2025, will be executed via the bourse's Block Trade Platform, with the government set to receive an upfront payment in lieu of future dividends.

The State has earmarked Sh40.2 billion from the deal tied to its residual 20 percent shareholding.

"This house adopts the joint report of the departmental committee on finance and national planning and the public debt and privatization committee on the consideration of sessional paper No. 3 of 2025 on the partial divesture of Safaricom PLC by the government of Kenya," speaker Moses Wetangula put the question to MPs.

"That the house approves sessional paper number 3 on the partial; divesture of Safaricom PLC by the government of Kenya."

The approval signals a significant shift in the government's role in one of East Africa's most profitable firms, even as authorities seek to balance fiscal needs with maintaining investor confidence.

Under the terms of the deal, the government has assured that there will be no job losses arising from the transaction, while Safaricom's existing dealer network and business model will be preserved for at least a decade aimed at maintaining operational stability and protecting the telco's vast distribution ecosystem.

The move is part of a broader policy direction by the Government of Kenya to unlock value from State-owned assets and reduce reliance on borrowing amid rising public debt pressures.

Kenya has previously undertaken privatization efforts, including the landmark Safaricom initial public offering in 2008, which saw millions of Kenyans acquire shares in the company.

Safaricom remains partly owned by the State alongside Vodafone Group Plc, with the government historically holding a strategic minority stake.

The telco has consistently been a top dividend payer on the NSE, making it a critical source of non-tax revenue for the Treasury.

The use of the Block Trade Platform is also expected to minimize market disruption by allowing large-volume transactions without triggering sharp price volatility in Safaricom's stock.

Read the original article on Capital FM.