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House team backs Sh204bn Safaricom State shares sale
Molo Member of Parliament and Chairperson of the National Assembly’s Departmental Committee on Finance and National Planning, Kimani Kuria, chairs a joint sitting of the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation to deliberate on the proposed partial divestiture of the Government of Kenya’s shareholding in Safaricom PLC, at Glee Hotel, Nairobi, on January 13, 2026.
The parliamentary Finance and National Planning Committee says only Sh29.8 billion will be available for development expenditure in the 2025-26 financial year, underscoring the urgent need for divestiture of State-owned enterprises (SOEs) to ease pressure on public finances.
The committee chaired by Molo MP Kuria Kimani said out of projected ordinary revenue of Sh3.321 trillion, Sh1.097 trillion will go towards interest payments on the country’s ballooning debt, while Sh960 billion will be spent on the public wage bill.
Kenya’s public debt currently stands at Sh12 trillion, according to recent figures from the Parliamentary Budget Office, an independent think tank that advises MPs on fiscal and budget matters.
In a position paper supporting the proposed partial sale of government shares in Safaricom PLC to raise Sh204.3 billion for critical infrastructure development, the committee said of the revenue collected nationally, Sh415 billion will be allocated to the 47 counties, while Sh205.2 billion will go towards pension payments and Consolidated Fund Services (CFS).
Mr Kimani said civil servants’ pensions alone will consume Sh34.4 billion, while the Equalisation Fund has been allocated Sh10.6 billion.
“The truth is that we have been living a lie all this time. There is no way we can build our country with Sh29.8 billion,” Mr Kimani told a public participation forum held in Nairobi on Tuesday on the proposed sale of 15 percent of the government’s shares in Safaricom.
“The 2025-26 fiscal framework offers a real-world example that shows the urgent need for divestiture to ease pressure on public finances,” he added.
Mr Kimani further revealed that the government had a guaranteed debt stock of Sh83.236 billion in the 2024-25 financial year. This includes Sh46.156 billion owed by the Kenya Ports Authority, Sh27.39 billion by KenGen, and Sh9.69 billion by Kenya Airways.
The National Assembly’s joint committees on Finance and National Planning and Privatisation and Public Debt are currently conducting public participation forums in 30 counties on Sessional Paper No 3, which proposes the partial divestiture of government shares in Safaricom.
Through the sessional paper, the government seeks to generate approximately Sh204.3 billion ($1.57 billion) in gross proceeds by selling a 15 percent stake in Safaricom at a premium of 23.6 percent above the six-month volume-weighted average price as of December 2, 2025.
The government plans to sell six million shares to Vodacom at Sh34 per share. Currently, the government owns 35 percent of Safaricom, the Vodacom Group holds 40 percent, while public shareholders, including ordinary Kenyans, own the remaining 25 percent.
Parliament had 28 days from December 2025 to approve, reject, or amend the sessional paper, failing which it will automatically take effect on March 26.
The sale will be conducted through a negotiated transaction at Sh34 per share, above the recent market average.
As of January 30, Safaricom shares were trading at about Sh29.50 on the Nairobi Securities Exchange.
The sale is expected to raise about Sh204 billion in immediate cash. In addition, the government will receive an advance payment of Sh40 billion against future dividends from the remaining 20 per cent stake. The government will repay about Sh55 billion over six years using dividends from the unsold shares. After this period, it will continue to receive full dividends.
Vodacom has committed that the transaction will not result in acquisition-related job losses for at least three years.
Safaricom will retain a Kenyan chairperson and independent directors, while Vodacom has pledged continued support for the Safaricom Foundation.
