NAIROBI, Kenya — Kiharu MP Ndindi Nyoro has criticised the government’s plan to offload a 15pc stake in Safaricom to Vodacom Group Limited, warning that the proposed sale amounts to an undervaluation of one of Kenya’s most strategic public assets.
Speaking during a press briefing on Thursday, Nyoro said the transaction — valued at Sh244.5 billion for 6,009,814,200 ordinary shares priced at Sh34 each — would reduce the State’s ownership in Safaricom from 35 per cent to 20pc.
He termed the move fiscally reckless and contrary to the country’s long-term economic interests.
“There is no way the government can purport to sell Safaricom at less than Sh2.5 trillion other than if there is self-interest or incompetence,” Nyoro said. “The government is underselling Safaricom and Kenyans are going on losses.”
He argued that the sale price does not match Safaricom’s market fundamentals, noting that the State previously sold shares at Sh45 before the company made its entry into Ethiopia — a major regional investment licensed in 2021 that analysts say enhances the telco’s long-term valuation.
The legislator warned that the planned share sale could drain public coffers by relinquishing a profitable revenue stream, especially given Safaricom’s position as Kenya’s most profitable company and a critical source of dividends for the Treasury.
Under the proposed transaction structure, the government would receive an upfront payment of approximately Sh40.1 billion in exchange for surrendering the right to future dividends estimated at Sh55.7 billion on the remaining stake.
Nyoro described the arrangement as a short-term revenue tactic that risks undermining long-term national financial stability.
“The government is lazy to grow the economy because that is when you get to support the growth of infrastructure, and we are now looking for shortcuts. This is just the beginning,” he stated.
Nyoro argued that instead of diluting ownership in the core business, the State should first consider offloading Safaricom’s subsidiary interests or engaging in targeted divestitures that would preserve the company’s overall valuation.
He proposed splitting Safaricom into three entities that could be valued and sold independently if necessary.
The acquisition plan by Vodacom is subject to a series of regulatory and governmental approvals in Kenya, South Africa and Ethiopia, where Safaricom recently launched commercial operations.
Domestically, the Capital Markets Authority must determine whether Vodacom qualifies for exemption from making a mandatory takeover offer to minority shareholders — a key provision under Kenya’s capital markets framework.
The proposed divestiture comes amid growing public scrutiny of the government’s fiscal strategy, particularly its reliance on asset sales to raise revenue for the Exchequer.
Safaricom’s financial performance, including its role in mobile money, telecommunications infrastructure, and national digital transformation, has led governance and economic experts to caution against rapid dilution of State ownership without robust valuation and public consultation.
Nyoro’s remarks add pressure on the National Treasury to explain the rationale behind the pricing and timing of the transaction, with analysts warning that the sale could trigger broader questions on State asset management, public interest, and compliance with procurement and investment laws.
With regulatory reviews still underway, the future of the proposed Safaricom stake sale remains uncertain — but the political and economic debate around it has now entered the national spotlight.
