Kenya’s National Treasury has initiated the formal process of divesting its stake in Safaricom Plc to the Vodacom Group, engaging lawmakers to outline the terms and safeguards of the proposed transaction.
Treasury officials appeared before key parliamentary committees, including the Departmental Committee on Finance and National Planning and the Committee on Public Debt and Privatization, to present the policy framework and economic rationale behind the sale.
On Tuesday, legislators heard from John Mbadi, Cabinet Secretary for the National Treasury, and Chris Kiptoo, Principal Secretary, who explained that proceeds from the transaction will serve as seed capital for the newly established National Infrastructure Fund and Sovereign Wealth Fund.
Mbadi assured lawmakers that measures have been put in place to protect public interest during and after the transaction. These include:
- The government retaining two board seats at Safaricom
- Commitments to employment stability for a defined period
- Requirements on board leadership structure
- Continued support for the Safaricom Foundation
Kiptoo said:
The transaction with Vodacom Group, a long-standing strategic partner, safeguards national interests, preserves Kenyan leadership, protects jobs, and strengthens Safaricom’s competitiveness and innovation leadership.
Mbadi emphasized that the process is being conducted in strict compliance with the Privatisation Act and the Public Finance Management Act, which require parliamentary consideration within 28 sitting days.
Kiptoo added after the briefing:
The session provided an opportunity to outline and discuss the policy and economic framework underpinning the proposed transaction.
