Members of Parliament have approved the proposed sale of a 15 per cent government stake in Safaricom to Vodacom in a deal valued at Ksh.204 billion, clearing the way for the government to proceed with the transaction.
The approval followed the tabling of a report by a joint parliamentary committee on Finance and National Planning and Public Debt and Privatisation, which supported the plan but attached several conditions to protect public interest.
The committees said the sale should not lead to any job losses and insisted that the interests of workers at Safaricom must be protected.
According to the report, the transaction is expected to generate significant revenue for the government, with the funds set to support the newly created National Infrastructure Fund.
The fund is intended to finance major infrastructure projects across the country without relying heavily on borrowing.
Despite the committee’s endorsement, the proposal sparked sharp debate in Parliament as lawmakers took different positions on whether the government should proceed with the sale.
Ndindi Nyoro, the MP for Kiharu, criticised the valuation of the shares, arguing that the deal undervalued the company and did not offer a fair return to Kenyans.
He accused the committee of failing in its duty to protect public interest.His remarks were challenged by Kuria Kimani, the MP for Molo, who asked Nyoro to present an alternative valuation model if he believed the proposed price was wrong.
The exchange reflected the wider disagreement among legislators about the transaction.
National Assembly Majority Leader Kimani Ichung’wah also dismissed Nyoro’s criticism, accusing him of misleading the public while speaking in markets and other public gatherings.
However, Caroli Omondi, the MP for Suba South, backed Nyoro’s concerns and warned colleagues against misleading the public about the deal.
Further criticism came from Makali Mulu, the MP for Kitui Central, who questioned the government’s credibility and criticised the ongoing political exchanges during the debate.
In its findings, the joint committees said the valuation process included safeguards meant to protect the public interest. They noted that the negotiated price of Ksh.34 per share reflects recent market movements and argued that negotiating directly with Vodacom would reduce execution risks while maintaining investor confidence.
The committees also addressed concerns about data protection, stating that Safaricom will continue to comply with the Computer Misuse and Cybercrimes Act to ensure personal information remains secure.
In addition, the report recommended that Vodacom should pay the government an upfront dividend of Ksh.40.2 billion. It also stated that the full proceeds from the transaction should be ring-fenced under the National Infrastructure Fund to ensure the money is used strictly for national development projects.
