Kenya's National Treasury has started the process of selling its stake in Safaricom to the Vodacom Group, engaging legislators to lay out the terms of the transaction.
Treasury officials have engaged National Assembly committees, including the Departmental Committee on Finance and National Planning and the Committee on Public Debt and Privatisation.
On Tuesday, parliamentarians heard from John Mbadi, cabinet secretary for National Treasury, and Chris Kiptoo, principal secretary.
Mbandi informed legislators that the proceeds will serve as seed capital for the new National Infrastructure Fund and Sovereign Wealth Fund.
He further stated that precautions had been implemented to protect the public interest following the transaction.
These include the state retaining two board seats at Safaricom, commitments on employment stability for a defined period, requirements on board leadership and continued support for the Safaricom Foundation.
“The transaction with Vodacom Group, a long-standing strategic partner, safeguards national interests, preserves Kenyan leadership, protects jobs and strengthens Safaricom’s competitiveness and innovation leadership,” Kiptoo said.
Mbadi added the transaction was being undertaken in accordance with the Privatisation Act the Public Finance Management Act, which requires parliamentary consideration within 28 sitting days.
“The (parliamentary) session provided an opportunity to outline and discuss the policy and economic framework underpinning the proposed transaction,” Kiptoo said after the session.
Share