Public hearings on the government's proposal to offload 15% of its stake in Safaricom have closed amid mounting public concern over how the proceeds would be used and who ultimately gains control of Kenya’s most profitable company.
- •The forums, led by the National Assembly’s Departmental Committee on Finance and National Planning alongside the Select Committee on Public Debt and Privatization, traversed 30 counties, ending over the weekend in Kwale and Kilifi.
- •While lawmakers reported broad support for infrastructure financing, the dominant mood across counties was caution, even suspicion, over potential misuse of funds.
- •In some of the forums, residents recalled that Safaricom’s 2008 IPO was heavily oversubscribed and asked why local investors are not being given priority in the current transaction.
In Embu, resident Charles Nyaga backed the divestiture in principle, arguing it could fund infrastructure without raising taxes or adding to public debt. But he warned against channeling the proceeds into the Consolidated Fund, saying it would make tracking expenditure difficult.
“If it goes to the Consolidated Fund, there will be no way to ascertain what the proceeds were used for,” he told MPs.
In Maralal, boda boda rider Amos Lekitap was more blunt. He warned that without sealing corruption loopholes, the sale proceeds could “not yield much,” urging lawmakers to publicly account for how the funds are appropriated and their impact.
Across counties, citizens repeatedly referenced past public finance controversies, including the Eurobond saga, as justification for demanding airtight safeguards.
In response to these fears, lawmakers are advancing the proposed National Infrastructure Fund Bill, 2026, which was read for the first time in Parliament on February 12.
The Bill, sponsored by Majority Leader Kimani Ichung’wah, seeks to establish a ring-fenced National Infrastructure Fund to receive proceeds from privatization and disposal of state assets.
Counties Demand a Share
Finance Committee Chair Kuria Kimani told a public forum in Mombasa that while many Kenyans support the divestiture, they are wary of misuse.
“The tabled Bill will see proceeds from privatization or sale of government assets go to this account where they will be ringfenced for viable projects like airports and dams and spent for intended purposes,” he said.
According to its memorandum, the Fund aims to accelerate catalytic infrastructure development, mobilize private capital, and reduce reliance on public debt for commercially viable projects. It would be overseen by a Board of Directors with a five-year investment policy framework.
However, even with the proposed Fund, skepticism remains high, with residents demanding a published list of specific projects that would benefit before approval of the sale.
In Samburu County, residents led by Samburu North MP Eli Letipila pressed for inclusion of priority infrastructure projects such as the Baragoi and Kisima–Wamba roads, and expanded water systems covering over 6,000 kilometres of road networks.
Elsewhere, residents insisted that proceeds should be equitably distributed across counties rather than concentrated in major urban projects.
Why Sell to Vodacom First?
Beyond the use of proceeds, the structure of the transaction has sparked unease.
Many participants questioned why the stake is set to be acquired by Vodacom Group, through its subsidiary Vodafone Kenya Limited, rather than first being offered to Kenyan retail investors via the Nairobi Securities Exchange (NSE).
Once completed, Vodacom’s stake would rise from 40% to approximately 55%, giving it effective control. The Government of Kenya would reduce its shareholding to 19.99%.
Safaricom, which operates in Kenya and Ethiopia and dominates mobile telecommunications and digital financial services through platforms such as M-Pesa, remains listed on the NSE.
The proposed shift in control has also drawn scrutiny from regional regulators.
The East African Community Competition Authority and the COMESA Competition Commission have opened formal inquiries to assess whether the deal could substantially lessen competition or raise public interest concerns across the region.
Regulators will examine whether increased control by Vodacom could entrench market dominance, particularly in mobile money and digital services, within both the East African Community and the wider COMESA market.
With public hearings concluded, the Finance Committee is now set to retreat and prepare its report to the House.
