Kenya’s National Assembly has approved the government’s plan to sell a 15 percent stake in Safaricom Plc to South Africa’s Vodacom Group, paving the way for one of the country’s largest corporate transactions in recent years. The decision, passed on March 11, 2026, allows the government to proceed with a partial divestiture of its shares in the country’s leading telecommunications operator.
The sale is expected to raise Sh204.3 billion from the share transaction itself, with total government inflows across the broader three part deal reaching approximately Sh244.5 billion. The government plans to channel proceeds toward the National Infrastructure Fund, a financing vehicle designed to support large scale development projects in transport, energy and logistics.
The approved transaction involves the government selling 6,009,814,200 Safaricom shares at Sh34 per share a premium of approximately 20.6 percent above Safaricom’s closing market price of Sh28.10 on the Nairobi Securities Exchange. The sale will reduce the state’s ownership from 35 percent to 20 percent, while raising Vodacom’s indirect effective stake from 40 percent to 55 percent, giving it clear majority and operational control.
The decision followed a joint report from the Departmental Committee on Finance and the Public Debt and Privatisation Committee, which reviewed the proposal under Sessional Paper No. 3 of 2025. Presenting the report, committee co-chair Shurie told MPs:
“I beg to give notice of the motion that this House adopts the joint report of the departmental committees on Finance and Public Debt and Privatisation on the consideration of Sessional Paper No. 3 of 2025 on partial divestiture of Safaricom.”
Despite relinquishing majority ownership, the government negotiated key protections, retaining two board seats, requiring the CEO to always be a Kenyan citizen, and securing consultation rights before any regional expansion by Safaricom. Local suppliers and employees are also protected for a minimum of three years following the transaction’s close.
The regulatory path is clearing. COMESA approved the deal on March 3, 2026, finding no harm to regional competition. Pending approvals from the Capital Markets Authority and the Communications Authority of Kenya remain outstanding before the transaction is executed through a block trade on the Nairobi Securities Exchange.
