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Home»Business»Safaricom partial divestiture: Endless scrutiny or bold infrastructure growth?
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Safaricom partial divestiture: Endless scrutiny or bold infrastructure growth?

By By Francis AtwoliJanuary 24, 2026No Comments9 Mins Read
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Safaricom partial divestiture: Endless scrutiny or bold infrastructure growth?
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As the country moves closer to adopting Sessional Paper No. 3 of 2025, which proposes the partial divestiture of 15 per cent of the Government’s equity in Safaricom PLC, Kenyan workers have supported this bold move by President William Ruto.

The move seeks to realise the implementation of a martial plan to transform our country into a modern society that has been long overdue. For starters, the proposed Safaricom partial divestiture will reduce the State’s shareholding from 35 per cent to 20 per cent, with the stated objective of mobilising approximately Sh204 billion in non-tax revenues.

The proceeds are intended to support the government’s broader infrastructure development agenda, principally through the establishment and operationalisation of the National Infrastructure Fund (NIF).

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COTU situates this proposal within Kenya’s long-standing development challenge, namely, persistent infrastructure deficits that constrain productivity, industrialisation, job creation, and the overall welfare of workers.

Indeed, despite decades of economic growth, Kenya continues to face high logistics costs, unreliable energy supply, inadequate transport networks, and underdeveloped urban and industrial infrastructure. These structural constraints disproportionately affect workers by limiting employment opportunities, suppressing wages, increasing the cost of living, affecting productivity and undermining decent work outcomes.

As Kenyan workers, we, however, note with concern that an inordinate amount of public debate is being consumed by arguments around the competitiveness of the divestiture itself, while very little attention is paid to the reason behind the sale.

This misplaced focus risks obscuring the bigger national issue before us, namely, the transformative potential of investing these resources in the National Infrastructure Fund (NIF), as a game changer for Kenya’s development.

As a country, we must come to the realisation that without a bold and deliberate choice to look forward rather than remain trapped in endless procedural suspicion, we will remain behind as other countries that have long been looking up to Kenya make bold steps to be bigger and dominant economies in the continent and the world. Indeed, history teaches us that nations do not develop by perfecting debate, but by making bold, calculated decisions and implementing them with discipline.

As COTU, and on behalf of Kenyan workers, we have made a deliberate and conscious decision not to be drawn into a narrative that elevates the transaction above the transformation, as the partial divestiture is not the end; it is merely the means. The objective is infrastructure, jobs, industrial growth, and dignity for Kenyan workers.

Therefore, those, like Kiharu MP Ndindi Nyoro, who reduce this conversation about the transformation of Kenya to merely about debatable pricing formulas and transactional mechanics, while ignoring the crippling infrastructure gaps, unemployment crisis, and high cost of living, are, wittingly or unwittingly, delaying the development of this country.

Having witnessed the transformation of the Asian Tigers firsthand, I wish to remind those who may not have had the same exposure what bold leadership can achieve. China transformed itself within a single generation not through endless debate, but by empowering builders, planners, and engineers to execute national priorities.

In fact, it is often said that China became a country of engineers rather than lawyers, focused on delivery, construction, and scale, while others perfected arguments as roads, factories, and power plants failed to materialise. This is why we support the partial divestiture of Safaricom PLC that will allow the Government unlock value from an existing mature public asset, generating substantial non-tax revenue for priority development interventions while avoiding additional taxation or unsustainable borrowing.

When channelled through the National Infrastructure Fund, these resources can be deployed into infrastructure investments with multiplier effects. From a workers’ perspective, this approach offers a development-oriented alternative to austerity measures that often shift the burden of fiscal adjustment onto labour.

At the same time, the retention of a significant minority shareholding by the Government preserves strategic public interest in Safaricom PLC because it ensures influence over key strategic decisions relating to national data, digital financial infrastructure, and critical communications systems that underpin Kenya’s economic and social life. This balance between divestiture and retention reflects a pragmatic approach that safeguards national interests while mobilising capital for development.

Finally, and most importantly, even as COTU supports this partial divestiture, we strongly call upon Safaricom PLC, which has an estimated 6,462 permanent employees, to stop union-busting tactics and have a recognition agreement with our affiliate, the Communication Workers Union (COWU).

We wish to remind the proposed new majority shareholder, Vodacom, that Article 41 of the Kenyan Constitution provides that union recognition and collective bargaining are not optional add-ons, but essential pillars of stable industrial relations, productivity and corporate sustainability.

The partial divestiture of Safaricom PLC must, therefore, mark a clean break from Safaricom’s long-standing bad reputation for resisting unionisation and relying heavily on outsourcing arrangements that weaken job security.

A recognition agreement with COWU would correct a long-standing imbalance, align Safaricom with constitutional and labour law guarantees, and ensure that workers are protected, represented, and treated with dignity as the company restructures and grows in the public spotlight.

Follow The Standard
channel
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As the country moves closer to adopting Sessional Paper No. 3 of 2025, which proposes the partial divestiture of 15 per cent of the Government’s equity in Safaricom PLC, Kenyan workers have supported this bold move by President William Ruto.

The move seeks to realise the implementation of a martial plan to transform our country into a modern society that has been long overdue. For starters, the proposed Safaricom partial divestiture will reduce the State’s shareholding from 35 per cent to 20 per cent, with the stated objective of mobilising approximately Sh204 billion in non-tax revenues.
The proceeds are intended to support the government’s broader infrastructure development agenda, principally through the establishment and operationalisation of the National Infrastructure Fund (NIF).

Follow The Standard
channel
on WhatsApp

COTU situates this proposal within Kenya’s long-standing development challenge, namely, persistent infrastructure deficits that constrain productivity, industrialisation, job creation, and the overall welfare of workers.

Indeed, despite decades of economic growth, Kenya continues to face high logistics costs, unreliable energy supply, inadequate transport networks, and underdeveloped urban and industrial infrastructure. These structural constraints disproportionately affect workers by limiting employment opportunities, suppressing wages, increasing the cost of living, affecting productivity and undermining decent work outcomes.

As Kenyan workers, we, however, note with concern that an inordinate amount of public debate is being consumed by arguments around the competitiveness of the divestiture itself, while very little attention is paid to the reason behind the sale.
This misplaced focus risks obscuring the bigger national issue before us, namely, the transformative potential of investing these resources in the National Infrastructure Fund (NIF), as a game changer for Kenya’s development.

As a country, we must come to the realisation that without a bold and deliberate choice to look forward rather than remain trapped in endless procedural suspicion, we will remain behind as other countries that have long been looking up to Kenya make bold steps to be bigger and dominant economies in the continent and the world. Indeed, history teaches us that nations do not develop by perfecting debate, but by making bold, calculated decisions and implementing them with discipline.
As COTU, and on behalf of Kenyan workers, we have made a deliberate and conscious decision not to be drawn into a narrative that elevates the transaction above the transformation, as the partial divestiture is not the end; it is merely the means. The objective is infrastructure, jobs, industrial growth, and dignity for Kenyan workers.

Therefore, those, like Kiharu MP Ndindi Nyoro, who reduce this conversation about the transformation of Kenya to merely about debatable pricing formulas and transactional mechanics, while ignoring the crippling infrastructure gaps, unemployment crisis, and high cost of living, are, wittingly or unwittingly, delaying the development of this country.

Having witnessed the transformation of the Asian Tigers firsthand, I wish to remind those who may not have had the same exposure what bold leadership can achieve. China transformed itself within a single generation not through endless debate, but by empowering builders, planners, and engineers to execute national priorities.
In fact, it is often said that China became a country of engineers rather than lawyers, focused on delivery, construction, and scale, while others perfected arguments as roads, factories, and power plants failed to materialise. This is why we support the partial divestiture of Safaricom PLC that will allow the Government unlock value from an existing mature public asset, generating substantial non-tax revenue for priority development interventions while avoiding additional taxation or unsustainable borrowing.

When channelled through the National Infrastructure Fund, these resources can be deployed into infrastructure investments with multiplier effects. From a workers’ perspective, this approach offers a development-oriented alternative to austerity measures that often shift the burden of fiscal adjustment onto labour.
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At the same time, the retention of a significant minority shareholding by the Government preserves strategic public interest in Safaricom PLC because it ensures influence over key strategic decisions relating to national data, digital financial infrastructure, and critical communications systems that underpin Kenya’s economic and social life. This balance between divestiture and retention reflects a pragmatic approach that safeguards national interests while mobilising capital for development.
Finally, and most importantly, even as COTU supports this partial divestiture, we strongly call upon Safaricom PLC, which has an estimated 6,462 permanent employees, to stop union-busting tactics and have a recognition agreement with our affiliate, the Communication Workers Union (COWU).

We wish to remind the proposed new majority shareholder, Vodacom, that Article 41 of the Kenyan Constitution provides that union recognition and collective bargaining are not optional add-ons, but essential pillars of stable industrial relations, productivity and corporate sustainability.

The partial divestiture of Safaricom PLC must, therefore, mark a clean break from Safaricom’s long-standing bad reputation for resisting unionisation and relying heavily on outsourcing arrangements that weaken job security.

A recognition agreement with COWU would correct a long-standing imbalance, align Safaricom with constitutional and labour law guarantees, and ensure that workers are protected, represented, and treated with dignity as the company restructures and grows in the public spotlight.

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Published Date: 2026-01-24 09:20:00
Author:
By Francis Atwoli
Source: The Standard
By Francis Atwoli

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