Parliament has thrown open the doors for public debate on the state’s controversial decision to sell a 15 percent stake in Safaricom, a transaction the Treasury claims has already yielded Sh244.5 billion.

At the heart of this inquiry is Sessional Paper No. 3 of 2025, a blueprint that fundamentally alters the ownership structure of Kenya’s most profitable corporate entity and shifts majority control to the South Africa-based Vodacom Group.

The Numbers Game

The proposal, now before the Finance and National Planning Committee and the Public Debt and Privatisation Committee, outlines the state's plan to offload 6.01 billion shares. This divestiture is positioned as a critical lever for funding infrastructure projects, a priority for the current administration.

Should the deal be ratified, the new shareholding structure of the telecommunications giant will look significantly different:

• Vodacom Group: 55% (Majority Stake)
• Public/Retail Investors: 25%
• Government of Kenya: 20% (Strategic Stake)

Under this arrangement, the government retains two seats on the board, ensuring it keeps a foot in the door of a company that is deeply entwined with the nation's financial ecosystem through M-PESA.

A Procedural Paradox?

The timing of this public participation exercise raises eyebrows among governance experts. Last week, the government announced it had already "secured" the proceeds from the transaction. This sequence of events—collecting funds before parliamentary approval—tests the limits of Section 87A of the Public Finance Management Act.

Treasury Cabinet Secretary John Mbadi defended the move, noting that the divestment reflects "strong investor confidence" and aligns with necessary fiscal reforms. However, the National Assembly is now invoking Article 118(1)(b) of the Constitution, which mandates public involvement in legislative business.

The Clerk of the National Assembly emphasized that any sale of government-linked corporations requires a resolution of the House to ensure "fiscal prudence, parliamentary oversight, and reinforce transparency."

Foreign Consolidation

A critical component of this deal involves Vodacom Group acquiring Vodafone Kenya’s entire interest. This consolidation effectively places the command center of Kenya's largest taxpayer firmly in South African hands, a shift that is likely to dominate the upcoming committee hearings.

As the Finance and Public Debt committees begin their review, the critical question for the Kenyan taxpayer remains: will the public’s voice shape the final deal, or is this merely a procedural rubber stamp on a decision already made?