NAIROBI, Kenya – Wiper Patriotic Front leader Kalonzo Musyoka has escalated criticism of the government over the sale of its stake in Safaricom PLC, warning that the transaction may have significantly undervalued the telecommunications giant and exposed the State to long-term financial losses.
Kalonzo argued that the valuation failed to fully account for M-Pesa, Safaricom’s mobile money platform, which he said should be treated as a standalone fintech entity with enormous economic weight.
According to the opposition leader, separating M-Pesa’s value from the broader Safaricom business would reveal a far higher worth, raising concerns that Kenya may have traded away a strategic national asset at a discounted price.
“If M-Pesa is properly valued as a standalone fintech platform, the public value potentially lost runs into hundreds of billions of shillings,” Kalonzo said.
He further questioned the financial logic behind the timing of the sale, noting that the government relinquished a reliable dividend stream for a one-off cash injection.
Kalonzo said the State’s previous 35 per cent economic interest in Safaricom translated to an estimated Sh16 billion in annual dividend income.
“Why not wait a few days for the dividend? Why rush to give up a strong long-term income stream for a short-term cash receipt?” he posed.
Beyond valuation concerns, Kalonzo said the transaction raises serious constitutional and governance questions, including transparency, accountability and adherence to the rule of law. He insisted the matter remains active before the courts despite the deal proceeding.
“This transaction raises grave questions of transparency, accountability, evaluation, sovereignty, and respect for the rule of law,” he said.
Warning potential investors, Kalonzo said legal and constitutional challenges remain unresolved, issuing what he described as a “caveat emptor” over the transaction.
“The constitutional questions remain alive,” he stated, adding that the courts retain the authority to nullify the sale should it be found unlawful.
Kalonzo emphasised that Safaricom is a strategic national asset built through Kenyan participation and innovation, with M-Pesa standing out as a flagship success story.
“Safaricom was built by Kenyans. Its value must not be traded away in haste behind closed doors,” he said.
The opposition leader also used the occasion to intensify his political attack on the administration, accusing it of economic mismanagement and calling for increased voter mobilisation ahead of the 2027 General Election.
“The levels of impunity, conflict of interest and outright theft in this government have reached an unacceptable level,” he said.
Lawyers accompanying Kalonzo said they were prepared to pursue the matter through higher courts, drawing parallels with past litigation involving major public infrastructure projects.
“We are going to take that matter all the way up to the Supreme Court,” one of the legal representatives said.
They also questioned the role of regulatory bodies, particularly competition authorities, in approving the transaction involving a major public asset.
“Where was or is the Competition Authority? What are they doing?” one lawyer asked.
Kalonzo also defended media freedom amid claims of partisan reporting, saying journalists should not be intimidated for scrutinising government decisions.
“Media freedom cannot be subjected to the whims and aspirations of a party that is losing grip,” he said.
He concluded by insisting that the sale could still be reversed depending on judicial outcomes.
“The courts can still rule that this was an illegal sale, in which case they will have to reverse the whole thing,” Kalonzo said.