MPs have revised the Safaricom partial divestiture deal, eliminating the risk of employee redundancies at the telecom giant.
In a report presented to Parliament on Tuesday, the National Assembly Committees on Finance and Public Debt proposed significant changes that allow the government to reduce its shareholding in Safaricom by 15 percent.
Co-chaired by Molo MP Kimani Kuria and Mbalambala MP Shurie Abdi, the joint committee prioritized job security for hundreds of employees. The updated deal now protects existing staff from layoffs for three years.
The report also mandates the National Treasury Cabinet Secretary to maintain the current business model for the next decade, ensuring no adverse effects on dealers, agents, and business partners.
“I propose that this House adopts the joint report regarding Sessional Paper No. 3 of 2025 on the partial divestiture of Safaricom, presented on March 10,” Shurie announced.
Shurie emphasized that, following regulatory approvals, Treasury will finalize the transaction via the Nairobi Securities Exchange (NSE).
The report recommends upfront payments instead of future dividends, with the government set to receive Sh40 billion and Sh200 million. Additionally, it suggests that divestiture proceeds be allocated to the National Infrastructure Fund (NIF).
The committee affirmed that Safaricom will remain a Kenyan company, despite the government’s sale of shares to foreign partner Vodacom. The government aims to offload up to 15 percent of its 35 percent controlling stake in the telecom.
