Parliament Triggers Massive Sh244B Safaricom Sale to South Africa

Parliament Approves Sh244 Billion Safaricom shares sell

The National Assembly has approved the government’s plan to sell a portion of its Safaricom PLC shares. This historic deal is worth over Sh244.5 billion. On Tuesday, March 31, 2026, lawmakers backed a report recommending the sale of a 15% stake to South Africa’s Vodacom Group. Consequently, the state’s ownership will drop from 35% to 20%. This move aims to provide fiscal relief without raising taxes or national debt.

Under Sessional Paper No. 3 of 2025, the deal includes Sh204.3 billion for 6.01 billion shares at Sh34 each. Additionally, Vodacom will pay Sh40.2 billion upfront for future dividends. Treasury Cabinet Secretary John Mbadi defended the strategy. He described it as a way to turn a “developed asset” into funds for long-term growth. Furthermore, Mbadi stated the money would support the National Infrastructure Fund and the Sovereign Wealth Fund. These funds will finance roads, dams, and energy projects.

However, some lawmakers opposed the approval. They questioned the deal’s transparency and the share price. Specifically, Kiharu MP Ndindi Nyoro argued that Sh34 per share undervalues the company. He believed Safaricom could be worth over Sh2.5 trillion if split into separate telecom and finance units. Therefore, Nyoro asserted that the government is underselling the firm. He also suggested that the lack of competitive bidding cost the public billions.

In response to these worries, Parliament added measures to protect national interests. For instance, the Safaricom CEO and board chair must remain Kenyan citizens. Additionally, the current dealer business model will continue for ten years. Furthermore, the agreement includes a three-year ban on staff layoffs related to the sale.

The approval becomes effective on April 1, 2026. However, it still requires final clearance from Kenyan, Ethiopian, and South African regulators. Once the deal closes, Vodacom will own a 55% controlling stake. Meanwhile, the public float on the Nairobi Securities Exchange will remain at 25%.