MPs approve partial sale of Safaricom stake amid court battle

The National Assembly has approved the sale of 15 per cent of the government’s 35 per cent stake in Safaricom to Vodacom, in a deal expected to raise Ksh.240 billion for the National Infrastructure Fund.

The approval comes despite ongoing court cases seeking to block the sale, with National Assembly Speaker Moses Wetang’ula insisting that no court order can interfere with parliamentary proceedings.

The decision is set to take effect on April 1, 2026, or at a later date once all required approvals are secured.

“Are we supposed to be discussing something that is still pending before the court?” Suba South MP Caroli Omondi posed.

Wetang’ula responded, “Parliament is not a party to those proceedings. The orders given, if authentic, are not directed at Parliament. This House has a constitutional responsibility to transact its business.”

National Assembly Majority Leader Kimani Ichung’wah added, "Caroli Omondi participated in the debate and opposed it; he should have raised those issues at that stage.

A report tabled by a joint parliamentary committee on Finance and National Planning and Public Debt and Privatisation early this month endorsed the proposed divestiture on condition that the deal will not result in any job losses.

The proceeds from the sale are expected to bolster the newly established National Infrastructure Fund kitty.

In approving the sale of the shares to Vodacom valued at Ksh.204 billion, the joint committees observed that the valuation exercise applied safeguards to protect public interest.

The committees noted that the negotiated price of Ksh.34 per share aligns with market movements, adding that negotiating with Vodacom minimises execution risks and preserves market confidence.

They also assured that personal data will be protected under the Computer Misuse and Cybercrimes Act.

The committee further recommended that Safaricom’s 855,000 direct employees’ jobs be safeguarded.

It also proposed that Vodacom pays Ksh.40.2 billion dividend upfront to the government and that proceeds from the transaction be ring-fenced under the National Infrastructure Fund.

Safaricom last week urged the High Court not to halt the proposed sale of government shares in the telco, arguing that the transaction is lawful, subject to regulatory oversight, and does not warrant conservatory orders.

Through its lawyers, the telecommunications firm told the court that stopping the process at this stage would distort the market and negatively affect investor confidence. 

It maintained that the matter before the court is largely a commercial dispute already undergoing scrutiny by the relevant regulatory bodies.