Legal expert Ndegwa Njiru has expressed concern over the government’s sale of 15 percent of Safaricom, arguing the deal lacked transparency and shifted control of one of Kenya’s most profitable assets to foreign investors.
His comments follow the December 4, 2025 transaction, which elevated Vodacom’s effective ownership in Safaricom to 55 percent.
The government previously held a 35 percent stake in Safaricom, with public shareholders owning the rest. The sale reduced state ownership to 20 percent while public investors retain 25 percent.
Vodacom acquired the stake for approximately KSh 244.5 billion, paying KSh 34 per share and providing an upfront KSh 40.2 billion to cover future dividends linked to the government’s remaining shares.
Officials describe the move as part of a broader strategy to finance the National Infrastructure Fund and a proposed Sovereign Wealth Fund, supporting major projects including roads, energy, and water infrastructure.
The government says it will retain strategic influence despite its reduced shareholding.
On X, Njiru criticised the divestment, emphasizing its opacity and the potential loss of national control.
He stated:“Fellow Kenyans, your 15% shareholding in Safaricom has been sold to foreigners in a completely opaque manner. Foreigners now own 70% of Safaricom.”
He further warned:“Which farmer in their right mind sells their best‑producing cow?”
Njiru’s comments underscore concerns about the long-term implications of majority foreign ownership for governance, dividend allocation, and strategic decision-making in one of Kenya’s flagship companies.
The transaction remains contingent on approvals from the Capital Markets Authority, the Communications Authority of Kenya, and other regulatory bodies in Kenya, South Africa, and Ethiopia.
The regulators are expected to evaluate the deal’s impact on competition, market stability, and consumer protection.
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