Kiharu MP Ndindi Nyoro has called for a cautious approach to the planned sale of 15 per cent of government shares in Safaricom, warning that rushing the process could disadvantage Kenyan taxpayers.
Speaking on Sunday during a church service in his constituency, Nyoro stressed the need for an open bidding system to ensure maximum value for the state’s stake.
“The government owns 35 per cent of Safaricom on behalf of all Kenyans. We must give companies a chance to compete for this stake so that the country receives full value,” Nyoro said.
He urged authorities to avoid hastily approving the transaction without allowing a transparent competition of bids.
Nyoro, who has experience in Kenya’s capital markets, raised concerns about the representation of the government in the negotiations.
“Some of the people representing the government in this deal may not be government employees or formally contracted to negotiate on behalf of the state. There may be conflicts in the way the deal is structured with potential buyers,” he noted.
The sale, part of ongoing efforts to mobilize funds and broaden shareholding in Kenya’s largest telecommunications company, has drawn public and political attention due to Safaricom’s market dominance and its importance to the country’s economy.
Experts say careful handling is essential to ensure taxpayers benefit from the divestment while maintaining investor confidence.
In recent years, the government has explored partial privatization of Safaricom to raise revenue and expand investment participation among Kenyans.
The Communications Authority of Kenya and Capital Markets Authority regulate such transactions, but MPs like Nyoro are now pressing for enhanced transparency and competitive processes before any final deal is approved.
By advocating for an open bidding system, Nyoro joins calls from other stakeholders who caution that a rushed sale could limit returns and raise concerns over fairness.
0 Comments