The National Assembly concluded the public participation period regarding the proposed sale of the government’s 15% stake in Safaricom Plc (NSE: SCOM). The window for public commentary, which opened on December 8, 2025, closed this past Thursday, 8 January 2026 at 5 PM. By the deadline, the joint committees overseeing the process – the Departmental Committee on Finance and National Planning and the Public Debt and Privatization Committee, had received more than 12,000 submissions. While an official source from the Clerk’s office indicated that the majority of these comments oppose the transaction, no further specifics were provided.
This consultative phase fulfills a constitutional requirement under Article 88(1)(b) and is a critical procedural step in the government’s plan to raise approximately KES 244.5 billion from the divestment. With public input now gathered, the process advances to parliamentary debate, a stage preceded by significant public discourse. A central concern among critics is the potential undervaluation of Safaricom, one of Kenya’s most profitable enterprises.
The earlier stated apprehension is highlighted by Kiharu MP Ndindi Nyoro, who states that the Safaricom sale based on the current market price as a benchmark is misleading and fails to secure fair value for the public. He advocates for an independent assessment to determine the stake’s optimal worth, questioning whether the Nairobi Securities Exchange accurately reflects the true value of major listed companies.
Nyoro argues that Safaricom shares, like those of other firms, may trade below their innate value, and thus should not be priced on share price alone. He also criticized the proposed KES34 per share price, which is a 24% discount from 2021 valuations, as grossly bad for Kenya, suggesting the terms resulted from either self-interest or incompetence in negotiation. His sentiments are echoed by other prominent figures, including former Deputy President Rigathi Gachagua and Wiper Leader Kalonzo Musyoka, who have threatened legal action to block the sale.
Treasury Defends Safaricom Sale Terms
In response, the government has maintained that the transaction offers fair value. National Treasury Principal Secretary John Mbadi, when announcing the deal last year, emphasized that the KES 34.00 share price represented a premium over prevailing market valuation and assured that the state would retain a 20% stake, preserving its influence over corporate decisions.
The Treasury’s stated rationale for the partial divestment is to generate non-tax revenue for funding essential infrastructure projects in energy, roads, aerospace, water, and digital transformation. Beyond the projected KES 204.3 billion from the share sale itself, the transaction includes an upfront payment of KES 40.2 billion from Vodacom Group in position of future dividends, contributing to the total targeted revenue.
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