The GEMA Cultural Association has urged lawmakers to ensure that local investors are given precedence in the government’s plan to divest part of its stake in Safaricom. In submissions to a parliamentary committee reviewing the proposal, the group said ordinary Kenyans and domestic institutions should have first access to the shares rather than seeing the government sell directly to foreign interests.
Represented by its professional arm Ndari Kirimaini, GEMA told MPs that prioritising Kenyan retail investors, pension funds, insurance companies and others would help retain dividend income and long-term economic value within Kenya. According to the association, keeping more capital at home will deepen the domestic financial market and support sustainable wealth creation.
The organisation stressed that its advocacy is not against foreign investment, but rather focused on empowering Kenyans and strengthening national ownership of key assets. GEMA also pointed to frequent oversubscription in Government Treasury bonds as evidence that local financial markets have sufficient liquidity to absorb the sale.
Context of the Sale Plan
Under the government’s proposal, it aims to sell 15 % of its 35 % stake in Safaricom — potentially generating around KSh 204 billion. If approved, the State’s holding would drop to 20 %, while Vodacom Group’s share would climb to about 55 %. Public investors would retain the remaining 25 %.
This planned divestment is part of a broader government strategy to mobilise non-tax revenue, reduce borrowing pressure and fund development projects spanning infrastructure, energy and water services. However, the proposal has sparked debate, with critics raising questions about valuation, process transparency and protection of public interests. Petitions and legal challenges have already emerged as the parliamentary hearings continue.
Public hearings are ongoing across counties as the National Assembly gathers input before making a final determination on the structure and beneficiaries of the share sale.
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