BUSINESS

NSE Insists Block Trading Board Be Used for Safaricom Sale

Share
NSE said off-exchange deals, would introduce unnecessary risks and remove the independent market reference needed to determine fair value.
NSE said off-exchange deals, would introduce unnecessary risks and remove the independent market reference needed to determine fair value.
Share

The Nairobi Securities Exchange (NSE) has emphasised that Kenya’s planned sale of a 15 per cent stake in Safaricom Plc must go through the exchange to ensure transparency and stability.

In a memorandum to the National Assembly, the NSE warned that carrying out the transaction as an off-market private deal could undermine investor confidence and obscure how the final price is determined.

The bourse said its Block Trading Board is the most suitable platform for handling such a large transaction without disrupting normal market activity.

“The Block Trading Board is best suited to handle a transaction of this size without disrupting normal market trading.”

The exchange explained that the Block Trading Board provides a regulated framework, with real-time reporting, clear price governance, and strict settlement controls.

Off-exchange deals, it said, would introduce unnecessary risks and remove the independent market reference needed to determine fair value.

“Bypassing the exchange in favour of an off-market private deal would raise concerns around price transparency and market confidence.”

The agreed sale price of Sh34 per share represents a 23.6 per cent premium over the six-month volume-weighted average price up to December 2, 2025. The NSE noted that a transaction executed on the exchange would signal to global investors that Kenya can handle large and complex equity deals under a strong regulatory framework.

The bourse also dismissed concerns that the sale could destabilise capital markets, describing it instead as a market-deepening move.

An exchange-based, premium-priced transaction is expected to improve liquidity in Safaricom shares by strengthening order-book depth and narrowing bid-ask spreads.

To safeguard long-term interests, the NSE recommended a 10-year strategic investor lock-in, which would prevent Vodacom or Vodafone from transferring or encumbering the acquired stake without approval from the National Assembly. The NSE said the measure would ensure long-term alignment between Safaricom’s majority owners and Kenya’s broader economic interests.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Retail station at canopy with shell logo
BUSINESS

Kenya’s Shell Pumps Run Dry Amid Rising Fuel Demand

Vivo Energy Kenya, the distributor of Shell fuel and services across the...

Communications Authority of Kenya offices in Nairobi
BUSINESS

CA Clears the Air on USB Type-C Requirements

The Communications Authority of Kenya (CA) has stepped in to address recent...

Person Holding an Empty Wallet
BUSINESS

Report: Growing Number of Kenyans Juggle Multiple Jobs to Make Ends Meet

A clear shift is emerging among Kenyan workers, with many choosing to...

Person holding Kenyan bank notes
BUSINESS

Rising Living Costs Push Kenyans into Debt for Basics

A recent Financial Wellness Monitor Report by Old Mutual has shown that...