Members of Parliament on Monday, commenced deliberations on Sessional Paper No. 3 of 2025, which proposes the partial divestiture of the Government of Kenya’s shareholding in Safaricom PLC, signalling a major policy move in the State’s fiscal and infrastructure financing strategy.
The process kicked off through a joint sitting of the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation, which opened stakeholder engagements on the proposed transaction. The sittings are being held pursuant to the Speaker’s directive contained in a Communication to the House delivered on December 4, 2025.
Under the proposal, the Government plans to divest 15 per cent of its stake in Safaricom, a transaction expected to generate approximately KSh204 billion (about USD 1.57 billion). According to the Sessional Paper, the planned sale would be executed at a 23.6 per cent premium to Safaricom’s six-month volume-weighted average share price as at December 2, 2025.
The National Treasury and Economic Planning Ministry has presented the divestiture as a strategic resource-mobilisation measure, positioning it as the first step in a broader plan to reallocate capital towards critical infrastructure investments. Priority sectors identified include energy, roads, water and airport infrastructure.
Treasury officials argue that the rationale for the proposed sale is anchored on the need to mobilise substantial non-tax revenue, reduce reliance on public borrowing, and expand fiscal space to enable the Government to deliver key development priorities without further straining public debt levels.
As part of the consultative process, MPs drawn from the two committees are scheduled to hold meetings with the Kenya Institute of Public Policy and Research Analysis (KIPPRA) and the Parliamentary Budget Office, institutions expected to provide independent technical and fiscal assessments of the proposed divestiture.
The stakeholder engagements are expected to run through Tuesday, January 20, 2026, after which the committees will compile their findings and recommendations for tabling before the House, paving the way for parliamentary debate on one of the most significant State divestment proposals in recent years.
