The Kenyan government has formally opened a public participation process on its plan to divest from Safaricom PLC partially, inviting Kenyans and key stakeholders to submit views on the proposed sale of part of the State’s shareholding in the telecommunications giant.
In a notice issued by the National Assembly, Parliament confirmed that Sessional Paper No. 3 of 2025 on the Partial Divestiture in Safaricom PLC by the Government of Kenya has been tabled and committed to the Departmental Committee on Finance and National Planning as well as the Public Debt and Privatization Committee for consideration.
The proposed divestiture targets the sale of 6,009,814,200 ordinary shares, equivalent to 15% of Safaricom’s issued share capital. Following the transaction, the government’s ownership in Safaricom would reduce from 35% to 20%, while Vodafone Group would retain its approximate 40% stake, and public shareholders would continue holding about 20%.
According to the government, the transaction is designed to mobilise resources for critical infrastructure development, including energy, roads, aerospace, digital transformation and water projects, while reducing reliance on external borrowing at a time of tight fiscal conditions.
The proposal estimates that the divestiture could generate approximately Ksh.204.2 billion (USD 1.5 billion), based on a share price of Ksh.34, which represents a premium of about 17% over the six-month volume-weighted average price of Safaricom shares. In addition, Vodafone has committed to an unconditional upfront payment of Ksh.40.2 billion (about USD 309 million) in lieu of future dividends that would have been payable to the government.
Also Read; Why State Sidelined Local Investors in a Ksh.244 Billion Safaricom Shares Offload
Parliamentary documents show the government intends to ring-fence the proceeds for development projects rather than recurrent expenditure. The funds are expected to act as seed capital for priority infrastructure and development programmes once Parliament completes the approval process.
The government argues engaging Vodafone Group as a strategic investor is central to the plan, which currently holds about 40% of Safaricom and is expected to deepen its role in governance and technical support following the transaction.
Safeguards have also been built into the proposal to protect national interests and these include restrictions on changes to Safaricom’s governance structure, protections for Kenyan management and local ownership interests, and commitments by Vodafone not to dilute its stake for at least three years.
The proposals also include requirements to preserve Kenyan control of strategic assets and maintain Safaricom’s role in national development.
The National Assembly has invited submissions from the public, Safaricom shareholders, regulators, employees, customers, and other interested parties. Memoranda can be submitted to the Clerk of the National Assembly through physical delivery or email before the parliamentary deadline.
The outcome of the public participation process will determine whether Parliament grants approval for what would be one of the largest equity divestments in Kenya’s capital markets history.
