The government expects to raise approximately Sh204 billion through the sale of part of its shareholding in Safaricom PLC to the Vodacom Group.
According to Molo Member of Parliament and Chairperson of the National Assembly Departmental Committee on Finance and National Planning, Francis Kuria Kimani, the shares alongside a Sh40 billion advance against future dividends from the retained shares, will be strictly set for development of infrastructure projects.
He assured that the proceeds of the sales were already earmarked for projects including the rehabilitation of road networks, expansion of water supply and sanitation systems, development of energy infrastructure, and improvement of transport facilities, while easing borrowing pressures and strengthening fiscal sustainability.
This was revealed during a public participation and civic education forum held in Kericho Town on Thursday, where Molo Member of Parliament and Chairperson of the National Assembly Departmental Committee on Finance and National Planning, Francis Kuria Kimani, explained that the ongoing engagement is intended to inform the public on the importance of the proposal, which will enable the government to finance critical infrastructure development that will be equitably distributed across all parts of the country.
The Molo legislator assured the public that the government is proposing to place the funds raised through the transaction in a dedicated, ring-fenced account to safeguard them from diversion, ensuring they are used solely for priority development projects and deliver direct benefits to Kenyans while upholding transparency and accountability.
He explained that the proposed sale would reduce the government’s stake in Safaricom from 35 percent (14,022,572,580 shares) to 20 per cent, while the government continues to remain a strategic shareholder to safeguard national interests.
Mr Kimani assured Kenyans that the government would prudently invest the funds in key infrastructural development like building roads, water projects, electricity and airports, among others.
He said the fund would be subjected to parliamentary approval, auditing, and oversight to ensure the money is applied strictly to development projects.
Kimani emphasised that Safaricom is a private company listed on the Nairobi Securities Exchange and that the government is acting strictly as a shareholder seeking to unlock value from public assets for development purposes.
He clarified that the government is not selling the company itself, only part of its shares, and that all proceeds will be directed to development projects approved and overseen by Parliament.
The forum, held at ACK Holy Trinity Church, brought together members of the public drawn from all six sub-counties of Kericho County: Soin Sigowet, Ainamoi, Bureti, Belgut, Kipkelion East, and Kipkelion West. Participants represented a wide range of groups, including civil society organisations, youth and women’s groups, farmers, religious institutions, the business community, and persons living with disabilities, reflecting broad and inclusive public interest in the government’s plan.
Kenya Civil Society’s Salim Ochango Barnabas raised the issue of data protection and privacy, questioning whether the proposed increase in Vodacom’s shareholding could expose Kenyans’ personal and financial data to external risks.
“The current Safaricom employees should be assured of their job security after the sale of the shares to Vodacom group. “Mr Barnabas added.
Dalmas Marugo Kipkirui, a Kericho resident, supported the proposed sale of the shares, emphasising the need for the funds raised to be safeguarded against misappropriation and corruption, and calling for strong accountability mechanisms and clear disclosure of the exact figures involved in the transaction.
Responding to these concerns, Molo MP Kimani Kuria explained that the negotiated sale to Vodacom was informed by commercial, regulatory, and timing considerations noting that the agreed price of Sh34 per share was above the prevailing market price, ensuring value for taxpayers.
He further assured participants that Kenya’s data protection laws remain fully applicable and that the transaction would not compromise the security of Kenyans’ personal data or digital platforms such as M-Pesa.
“Kenyans’ data remains protected under our laws, and this transaction does not alter Safaricom’s obligation to comply with regulatory and data protection requirements,” he said.
Kimani also acknowledged that while some participants supported the plan as a good deal for the government, others proposed amendments aimed at strengthening transparency, accountability, and oversight.
He emphasised that all views submitted during the forum would be documented and presented to Parliament to inform debate and possible refinements to the proposal.
Safaricom currently serves over 60 million customers in Kenya and Ethiopia, contributed Sh722 million to the economy in the 2024/2025 financial year, and supports about 1.28 million jobs. It has over 533,000 shareholders holding more than 40,065,428,000 shares, of which the government owns 14,022,572,580 shares (35%), Vodacom Group holds 16,000,000,000 shares (40%), and public shareholders control 10,042,855,420 shares (25%).
Safaricom PLC is a privately owned company registered in Kenya and listed on the Nairobi Securities Exchange. The proposed sale does not change its status, operations, or services but only involves the government reducing part of its shareholding to raise development funds while remaining a strategic shareholder to safeguard national interests, ensure regulatory compliance, and protect Kenyans’ data.
Also present during the session were Members of Parliament including Joseph Maero Oyula (Butula), Abraham Kipsang Kirwa (Mosop), George Risa Sunkuyia (Kajiado West) and Joseph Kipkoross Makilap (Baringo North), who accompanied Molo MP Hon. Francis Kuria Kimani in overseeing the public participation exercise.
Kericho County Commissioner Jeremiah Gicheru Mwai was also present, accompanied by other members of the National Government Administration Officers (NGAO) including Kericho East Deputy County Commissioner Kibe Maguta.
By Dominic Cheres and Kibe Mburu
