MPs approve sale of 15% government stake in Safaricom to Vodacom

A report tabled by a joint parliamentary committee on Finance and National Planning and Public Debt and Privatisation endorsed the proposed divestiture on condition that the deal will not result in any job losses.

The proceeds from the sale are expected to bolster the newly established National Infrastructure Fund kitty.

The sale of the 15 per cent government stake in Safaricom was debated for the first time in Parliament after the report was tabled by the joint committees on Finance and National Planning and Public Debt and Privatisation, with Members of Parliament divided over the divestiture.

“The deal was undervalued… Kenyans have been given a raw deal...The joint committee is incompetent," said Kiharu MP Ndindi Nyoro.

Molo MP Kuria Kimani on his part said: “Ndindi, why can’t you give us an alternative model for valuation?”

"Ndindi is right and you who support this should stop misleading Kenyans," said Suba South MP Caroli Omondi.

“This government cannot be trusted… I don’t know why Kalonzo Musyoka scares Ichung’wah so much… he keeps on mentioning him," added Kitui Central MP Makali Mulu.

In approving the sale of the shares to Vodacom valued at Ksh.204 billion, the joint committees observed that the valuation exercise applied safeguards to protect public interest.

The committees noted that the negotiated price of Ksh.34 per share aligns with market movements, adding that negotiating with Vodacom minimises execution risks and preserves market confidence.

They also assured that personal data will be protected under the Computer Misuse and Cybercrimes Act.

The committee further recommended that Safaricom’s 855,000 direct employees’ jobs be safeguarded.

It also proposed that Vodacom pays Ksh.40.2 billion dividend upfront to the government and that proceeds from the transaction be ring-fenced under the National Infrastructure Fund.