NAIROBI, Kenya- Kiharu Member of Parliament Ndindi Nyoro has intensified pressure on the government to halt the proposed sale of a 15 per cent stake in Safaricom to South Africa’s Vodacom Group.
The legislator has warned that the deal could shortchange Kenyans and cost the country billions in lost value.
The government’s plan, led by the National Treasury, aims to sell 6,009,814,200 shares, valued at Sh34 per share, in a transaction expected to raise around Sh204.3 billion, with total projected proceeds, including a dividend component, of about Sh244.5 billion.
Under the deal, Vodacom’s stake in Safaricom would rise to approximately 55 per cent, while the government’s holding would drop to about 20 per cent.
Safaricom Sale must be halted. The “negotiated” price is now lower than the “Market Price” meaning GoK is selling at a discount.If GoK will not effectively represent the people of Kenya in the sale of Safaricom, Kenyans will directly engage the directors of Vodacom including
Nyoro Says Sale Must Be Stopped
Nyoro has accused the government of rushing into the transaction without adequate transparency and competitive bidding, arguing that the direct sale undervalues the company and shortchanges Kenyan taxpayers.
He says that opening the process to international bidding could unlock significantly higher value for the nation.
“Kenyans will get a raw deal if this sale goes through as currently structured,” Nyoro said.
He asked lawmakers and the public to demand a more competitive process, while calling for an immediate halt to the sale until broader consultation and international bidding are conducted.
Nyoro also claims the share price, set at Sh34, represents a “daylight robbery of a national asset,” suggesting that Safaricom’s intrinsic value could be much higher than the proposed sale price.
Calls for Transparency and Public Participation
The sale has drawn broader public scrutiny, with stakeholders urging accountability and transparency.
A petition was recently filed at the Milimani High Court seeking to halt the transaction, citing concerns over unclear valuation methods, lack of competitive bidding and insufficient public participation, potentially contravening procurement and privatisation laws.
Petitioners want the court to preserve the status quo until all aspects of the deal are properly examined.
Government and Regulatory Support for the Deal
Despite the pushback, government officials and regulators have defended the transaction.
Treasury Cabinet Secretary John Mbadi dismissed claims that Safaricom was being undersold, arguing that selling shares directly to the local market would not have delivered better value and could have saturated the Nairobi Securities Exchange.
Meanwhile, the Central Bank of Kenya has backed the sale, assuring markets that the country’s financial system, particularly the M‑Pesa platform with over Sh250 billion in client funds, remains resilient and that the transaction, if prudential safeguards are enforced, would not threaten financial stability.
