The National Assembly has launched a high-stakes inquiry into the government’s sale of a 15% stake in Safaricom to South African giant Vodacom. The transaction, valued at a staggering KES 244.5 billion ($2.1 billion), effectively hands majority control (55%) of East Africa’s most profitable company to foreign investors, sparking fierce debate over national sovereignty and strategic assets.

The Departmental Committee on Finance and National Planning summoned Treasury officials this morning to explain the rationale behind the sale. While the government argues the deal unlocks capital for the new National Infrastructure Fund without increasing debt, MPs are skeptical about the valuation and the long-term implications of ceding control.

The Deal Breakdown

• The Numbers: The state is selling 6.02 billion shares at KES 34 per share—a premium on the current market price of KES 28. This will reduce the government's holding from 35% to 20%, while Vodacom’s stake rises to 55%.
• The Conditions: To quell public anxiety, the state has built in "Golden Share" provisions. The CEO must remain a Kenyan citizen, the government retains two board seats, and Vodacom cannot change the brand name or lay off staff without approval.
• The "Upfront" Dividend: A controversial clause involves Vodacom paying an additional KES 40.1 billion upfront for the rights to future dividends. Critics call this "selling the family silver to pay for lunch."

Strategic Sell-Out or Smart Economics?

"Safaricom is not just a company; it is part of our national security infrastructure," warned a vocal MP from Nairobi. "M-Pesa runs our economy. Can we trust a foreign majority owner with our financial data?" Treasury Cabinet Secretary John Mbadi defended the move, stating the proceeds will fund the completion of stalled road projects and the new digital superhighway.

The probe will also investigate whether local institutional investors (like NSSF) were given a fair chance to buy the stake. As the hearings continue, the deal hangs in the balance, awaiting the green light from the Competition Authority and the Capital Markets Authority.