By A, KNA
Members of the public are calling on the government to ensure all proceeds of the divestiture of a 15 per cent stake in Safaricom to Vodacom are strictly ring fenced for development.
However, Some of the speakers at the public participation forum questioned the timing and implications of the transaction
Speaking at Kampi ya Moto during a public participation forum, they said the move was brilliant only if the funds raised will be used strictly for development projects but not to end up in a few people pocket in a feared mega scandal in waiting.
Betty Mutai and Eddy Odongo welcomed the plan, saying it would help reduce the government’s reliance on borrowing and increasing the depth.
Festus Lumumba who was centrally opinion argued that the amount to be raised was small compared to the value of the asset. He want the priorities on the sale of shares to be given to local investors as opposed to foreign companies.
Other resident urged that it was time for Kenya to dispose some of its assets which has been under-utilized for many years.
Under the proposal, the State plans to sell 15 per cent of its 35 per cent stake to South Africa’s Vodacom Group for Sh204.3 billion, pricing each share at Sh34.
The offer price represents a 23.6 per cent premium over Safaricom six-month average trading price as at December 2, 2025, according to documents presented during public participation forums.
Once the transaction is completed, the government’s shareholding will fall to 20 per cent, Vodacom’s stake will rise to 55 per cent, while public shareholders will retain 25 per cent.
Vodacom will also pay Sh40.2 billion upfront for future dividend rights attached to the State’s remaining stake, bringing the total expected cash inflow to about Sh244.5 billion.
Molo MP Kuria Kimani, who chairs the Finance and National Planning Committee in the National Assembly, led the parliamentary team who were in attendance.
The government says the sale is intended to raise funds for infrastructure projects such as roads, electricity, water, airports, and other public works. The move is also aimed at reducing public debt by avoiding additional borrowing and tax increases.
According MP Kuria Kimani, the proposal, the sale will not affect Safaricom services such as calls, internet, or M-Pesa. Kenyan shareholders will retain their shares, and Vodacom has committed that there will be no job losses related to the acquisition for at least three years.
Safaricom will retain a Kenyan chairperson and independent directors, while the government will keep two seats on the board to protect national interests. Vodacom will also continue supporting the Safaricom Foundation.
The ongoing public participation seek to get the diverse views of Kenyans before seeking approved by the National Assembly and comply with all legal requirements. The government says public participation and parliamentary oversight will be part of the process to ensure transparency and accountability.
Besides the physical public participation, members of public both in Kenyan and abroad are welcomed to share their views by scanning the QR code provided where locals can give their views online.