Kenya’s parliament committees back $1.5 billion Safaricom stake sale

Two Kenyan parliamentary committees have recommended the approval of the government’s proposed sale of part of its stake in Safaricom PLC, clearing a legislative hurdle for the transaction tied to a strategic deal with South Africa’s Vodacom Group.

In a joint report tabled in parliament on Tuesday, the Public Debt and Privatisation Committees said they support the government’s plan to dispose 15% shares in the Nairobi-listed telecoms giant for KES204 billion ($1.5 billion) and channel the proceeds into the National Infrastructure Fund. 

Lawmakers argued that directing the funds toward infrastructure investment would help ease fiscal pressure while financing large-scale development projects.

The recommendation effectively paves the way for the Kenyan government to proceed with the transaction, part of a broader restructuring involving Safaricom’s regional operations and Vodacom’s growing role in the group’s strategy.

According to the report, the committees reviewed the structure of the deal, the expected valuation implications, and the proposed use of proceeds before concluding that the transaction was in the public interest. 

Legislators said the infrastructure fund would provide a dedicated vehicle to deploy the money into long-term projects, including roads and energy.

“The committees are satisfied that the proposed share sale will unlock value for the government while supporting priority infrastructure investments,” the report noted.

The government currently holds a 35% stake in Safaricom alongside Vodacom, the telecom operator’s largest shareholder. Treasury officials have argued that a partial divestment would allow the state to raise capital without increasing public debt, while also strengthening Safaricom’s regional expansion plans.

Safaricom is one of Kenya’s most profitable companies and a key contributor to the national exchequer through taxes and dividends. Its dominance in mobile money through the M-Pesa platform has also made the telecom operator an important pillar of the country’s digital economy.

The recommendations now move to the full house of the Parliament of Kenya for debate and final approval. If adopted, the government would be able to proceed with the transaction and channel the funds into the infrastructure vehicle.

The move comes as Kenya grapples with mounting fiscal pressures and rising debt servicing costs. Officials have turned to asset sales and privatisation plans, including the just-concluded Kenya Pipeline Corporation (KPC) initial public offering IPO which raised KES112 billion ($867.2 million) against a target of KES106.7 billion ($826.1 million).