The Parliament has formally approved the divestiture of a 15 per cent government stake in Safaricom to Vodacom, in a deal valued at KES 204 billion.
The decision follows the tabling of a comprehensive report by a joint parliamentary committee comprising the Finance and National Planning and the Public Debt and Privatisation teams.
While the move marks a significant shift in the ownership of the country’s largest telecommunications firm, the approval was granted on the strict condition that the transaction results in no job losses.
Consequently, the committee has recommended that the positions of Safaricom’s 855,000 direct employees be strictly safeguarded.
The proposal sparked a fierce divide on the floor of the House on Wednesday, March 11, 2026, as lawmakers sparred over the valuation of the telco.
Kiharu MP Ndindi Nyoro emerged as a vocal critic of the transaction, claiming that the deal significantly undervalued the state’s assets.
“The deal was undervalued… Kenyans have been given a raw deal…The joint committee is incompetent,” Mr. Nyoro told the House.
However, these claims were swiftly met with pushback from committee members, such as Molo MP Kuria Kimani, who challenged the critic to provide evidence, asking, “Ndindi, why can’t you give us an alternative model for valuation?”
The exchange grew increasingly personal as National Assembly Majority Leader Kimani Ichung’wah accused Mr. Nyoro of “misleading Kenyans” during public engagements.
This sentiment was countered by Suba South MP Caroli Omondi, who insisted that Mr. Nyoro was right to raise the alarm, while Kitui Central MP Makali Mulu questioned the government’s transparency and its focus on political rivals.
Despite this political friction, the joint committee maintained that the valuation process was robust and designed to protect the public interest, noting that the negotiated price of KES 34 per share aligns with current market movements.
Furthermore, the committee argued that negotiating directly with Vodacom, an existing major shareholder, minimises execution risks and helps preserve investor confidence.
To address privacy concerns, the committee assured the public that personal data would remain protected under the Computer Misuse and Cybercrimes Act.
In terms of the financial rollout, it is proposed that Vodacom pays an upfront dividend of KES 40.2 billion to the government.
Ultimately, all proceeds from the KES 204 billion sale are to be ring-fenced specifically to bolster the newly established National Infrastructure Fund.