Parliament has formally approved the partial sale of government shares in Safaricom to South Africa’s Vodacom, paving the way for the National Treasury to receive Sh240 billion from the landmark transaction.

The National Assembly on Tuesday, March 31, 2026, unanimously adopted the report of the joint committees on Finance and National Planning and Public Debt and Privatisation, clearing the government to offload a 15 per cent stake in the telco.

With the House approval, the National Treasury will proceed to complete the transaction effective April 1, 2026, or at a later date once all regulatory approvals and preconditions in the Share Purchase Agreement are met.

The sale will be conducted through the Block Trade Platform of the Nairobi Securities Exchange.

The divestiture is expected to raise Ksh200 billion from the share sale, alongside Ksh40.2 billion in upfront payments from Vodacom in lieu of future dividends, bringing the total proceeds to Ksh240.2 billion.

Caroli Omondi protests

Lawmakers approved the deal through an acclamation vote, despite objections raised by Suba South MP Caroli Omondi, who cited an active court case challenging the proposed transaction.

Omondi rose on a point of order and asked the Speaker to determine whether the House could proceed to approve the sale when there is an ongoing case on the proposed sale in court.

However, Speaker Moses Wetang’ula dismissed the objection.

“That, this House adopts the Joint Report of the Departmental Committee on Finance and National Planning and the Public Debt and Privatisation Committee on the consideration of Sessional Paper No 3 of 2025 on Partial Divestiture in Safaricom PLC by the government of Kenya, laid on the Table of the House on Tuesday, March 10, 2026 and— resolves that, pursuant to the provisions of section 87(A) of the Public Finance Management Act, Cap. 412A, the House approves the Sessional Paper No 3 of 2025 on Partial Divestiture of Safaricom PLC by the government of Kenya, and further resolves as follows-the effective date for the approval shall be April 1, 2026, or such later date when all regulatory approvals that form condition precedent in paragraph 4.1 of the Share Purchase Agreement shall have been obtained,” Wetang’ula said.

He ruled that Parliament is not party to the court proceedings and cannot be barred from executing its constitutional mandate.

Safeguarding stakeholders

The report, initially tabled by Public Debt and Privatisation Committee chair Abdi Shurie, includes several conditions aimed at safeguarding stakeholders.

Among the key recommendations is the protection of existing employees from job losses and the preservation of Safaricom’s shared prosperity business model.

The House directed National Treasury Cabinet Secretary John Mbadi to ensure that within 10 years of the divestiture, there will be no material changes that could prejudice dealers, agents, and business partners.

Additionally, the proceeds from the transaction will be paid into the National Infrastructure Fund (NIF) to support development projects.

Currently, the government holds a 35 per cent stake in Safaricom, valued at between Ksh280 billion and Ksh300 billion. Vodacom owns 40 per cent.

Following the transaction, Vodacom’s stake will rise to 55 per cent, giving it majority control of the telecommunications giant.