Kiharu MP Ndindi Nyoro has called for clearer justification from the government over the recent sale of Safaricom shares to Vodacom, warning that the transaction may shortchange Kenyan taxpayers.
In a statement published on X on Thursday, the legislator questioned the valuation used in the deal and urged authorities to review the terms before the sale proceeds further.
Nyoro argued that the pricing raises concern, noting that Safaricom’s market value was significantly higher at various points in the past.
He referenced the 2021 trading period, when the company’s shares hit about KSh45, placing its worth at roughly KSh1.8 trillion.
According to him, the current offer of KSh34 per share translates to a valuation of under KSh1.4 trillion, which he described as a substantial decline that requires public explanation.
His remarks come at a time when debate over the management of state assets has intensified, with MPs increasingly scrutinising how the Treasury handles strategic investments.
Safaricom, Kenya’s most profitable listed company, has long been regarded as a critical public asset given the government’s historical stake and the company’s role in mobile money, digital infrastructure, and regional expansion. Nyoro said that selling shares without adjusting the structure of the business limits the value Kenya can capture from the transaction.
He suggested that Safaricom’s operations should have been reorganised into separate entities—telecommunications, tower infrastructure, and financial services—before any disposal of state shares.
In his view, such restructuring could have yielded a stronger combined valuation, especially as the firm expands into Ethiopia, one of Africa’s fastest-growing telecom markets.
Nyoro also questioned the financing arrangement attached to the transaction, saying the state appears to be advancing future dividends linked to its remaining stake.
He described the mechanism as equivalent to taking on a KSh40 billion financial obligation that would affect future earnings from the company.
He added that Kenya should avoid entering deals that limit long-term fiscal flexibility for the sake of immediate funding needs.
Debate over the Safaricom sale is likely to continue as Parliament and the Treasury navigate competing demands of fiscal consolidation, public investment, and political accountability.
While the government has previously defended its asset-disposal programmes as part of a broader effort to manage national debt, no fresh statement had been issued by Thursday evening regarding the concerns raised by Nyoro.
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