The National Assembly has invited public submissions on the Government’s proposal to sell part of its stake in Safaricom PLC.
The planned divestiture represents a new stage in Kenya’s privatisation and resource‑mobilisation strategy.
In a notice dated 8 December 2025, the Departmental Committee on Finance and National Planning, together with the Public Debt and Privatisation Committee, invited Kenyans to submit memoranda before 8 January 2026.
“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 Privatisation Committee,” read the notice.
The call relates to Sessional Paper No. 3 of 2025, tabled by the National Treasury and Economic Planning, on the partial divestiture of the government’s shares in Safaricom PLC.
Key Divestiture Proposals
- Stake on offer: 15% of Safaricom PLC, equivalent to about 6 billion shares.
- Indicative proceeds: Up to KSh 204.3 billion if the share price reaches KSh 34.00.
- Strategic retention: The government will retain a 20% stake in Safaricom.
- Use of funds: Budgetary support and debt management under the privatisation plan running to June 2026.
Public Participation Window
- Written memoranda are being received from citizens, institutions, shareholders, customers, employees, and regulators.
- Submissions should be delivered to the Clerk of the National Assembly by 8 January 2026.
Vodafone Kenya Acquisition Notice
Safaricom also received a notice from Vodafone Kenya Limited indicating its intention to acquire the government’s 15% stake (6,009,814,200 shares) at KSh 34.00 per share, valued at KSh 204.3 billion.
- On the announcement date (4 December 2025), Safaricom was trading at KSh 29.45.
- This is the second divestiture by the government. The first was in 2008, when it sold 25% of its stake via IPO, reducing its shareholding from 60% to 35% and raising KSh 50 billion.
Key Takeaways
- After the transaction, Vodafone Kenya will hold 54.9%, the Government 20.0%, and public investors 25.1%.
- The Government will receive a total of KSh 244.5 billion, including KSh 40.2 billion upfront for future dividend rights.
- The acquisition will be treated as gaining effective control under Kenya’s Capital Markets (Take‑overs & Mergers) Regulations, 2002, triggering provisions designed to protect minority shareholders.
Shareholding Before and After Acquisition
| Shareholder | Shares Before | % Before | Shares After | % After |
|---|---|---|---|---|
| Vodafone Kenya Ltd | 16,000,000,000 | 39.9% | 22,009,814,200 | 54.9% |
| CS National Treasury | 14,022,572,580 | 35.0% | 8,012,758,380 | 20.0% |
| KCB Nominees A/C 9158 | 345,582,886 | 0.9% | 345,582,886 | 0.9% |
| KCB Nominees A/C 1019D | 330,463,100 | 0.8% | 330,463,100 | 0.8% |
| Standard Chartered Nominees KE004667 | 303,523,306 | 0.8% | 303,523,306 | 0.8% |
| Stanbic Nominees NR1031458 | 191,930,759 | 0.5% | 191,930,759 | 0.5% |
| Standard Chartered Nominees RESD KE11401 | 189,350,800 | 0.5% | 189,350,800 | 0.5% |
| Stanbic Nominees NR1030824 | 188,160,853 | 0.5% | 188,160,853 | 0.5% |
| Stanbic Nominees R6631578 | 140,208,207 | 0.3% | 140,208,207 | 0.3% |
| Others | 8,353,635,509 | 20.8% | 8,353,635,509 | 20.8% |
| Total | 40,065,428,000 | 100% | 40,065,428,000 | 100% |
Nine Conditions Vodacom Must Meet
The Government of Kenya has secured the following undertakings from Vodacom, insofar as possible, in its capacity as a shareholder of Safaricom:
- No employee redundancies are declared other than in the ordinary course of business.
- Continued support for the Safaricom Foundation and M‑Pesa Foundation.
- Prior consultation with the Government before supporting any expansion outside Kenya (excluding existing operations).
- The chairperson and chief executive officer of Safaricom must always be Kenyan citizens.
- No changes to the executive committee without the consent of the chief executive officer.
- No changes to the Safaricom corporate brand, including name, trademarks, or logos.
- No significant changes to local suppliers within three years of the Signature Date, except in the ordinary course of business.
- All trustees of the Safaricom and M‑Pesa Foundations must be Kenyan citizens, with funds used exclusively for projects in Kenya.
- No action or decision on the above matters may be undertaken without the prior written consent of the Government of Kenya.
Why It Matters
Safaricom is one of Kenya’s most profitable and systemically important companies. The proposed sale and Vodafone Kenya’s acquisition have stirred debate over valuation, long‑term state control, and the broader privatisation agenda.
