NAIROBI, Kenya — Kiharu Member of Parliament Ndindi Nyoro has criticised the government’s plan to sell a 15 per cent stake in Safaricom, warning that Kenya risks accepting a “sub-optimal” deal by favouring an inferior offer over an open international bid.
In a strongly worded statement, Nyoro said that while opening the sale to global investors would benefit the country, the government appeared keen to rely on the concept of “market price”, which he argued disadvantages the seller.
“The language of ‘market price’ is the language of a buyer, not a seller,” Nyoro said, adding that value — not prevailing share prices — should guide such strategic transactions.
To support his argument, the MP cited recent corporate transactions where shares were sold far above their market trading prices.
He pointed to NCBA shares, which were trading below Sh70 before the announcement of a transaction, but were eventually sold to Nedbank at Sh102 per share.
It is obvious Kenya will benefit from opening up the Sale of GoK 15% Safaricom Stake to an International bid. But GoK is very keen to accept an inferior offer that is sub optimal.The language of “Market Price” is the language of a buyer, not a seller.NCBA shares were trading
Nyoro also referenced the sale of East African Breweries Limited (EABL) shares, noting that while the stock was trading at about Sh244, Diageo agreed to sell its 65 per cent stake to Japanese firm Asahi at Ksh 590 per share.
Similarly, he said Rea Vipingo shares were trading at around Sh27.50 before the company was bought out at Sh85 per share.
“These parties knew what the share prices were, but they went for the value,” Nyoro said.
He warned that allowing self-interest to influence the Safaricom transaction would short-change Kenyans, stressing that the telecommunications firm remains a strategic national asset.
“Only self-interest can cloud the correct judgement and decision from being made and executed. Kenya deserves better,” he said.
The government has yet to respond publicly to the concerns raised over the proposed sale of the Safaricom stake.