Kenya risks losing billions of shillings if the government goes ahead with the proposed sale of its 15 per cent stake in Safaricom without opening the deal to international bidders, Kiharu Member of Parliament Ndindi Nyoro has warned.
Nyoro submitted a memorandum before a joint sitting of the National Assembly Committees on Finance and National Planning, and Public Debt and Privatisation, opposing the current structure of the transaction. He argued that the process, as designed, could lead to an undervaluation of one of Kenya’s most profitable and strategic companies.
At the heart of Nyoro’s concerns is the valuation of Safaricom PLC. He told the committees that the telecommunications firm was valued at about Ksh 1.8 trillion in 2021, even before it expanded into the Ethiopian market. In his view, the company should be worth significantly more today.
“The valuation is not commensurate with what Safaricom PLC is. The company was valued at Ksh1.8 Trillion in 2021 before the investment in Ethiopia. It should be worth more now,” he said.
The legislator also questioned recent market developments surrounding Safaricom shares, suggesting they may have contributed to a depressed share price ahead of the sale.
Unsettled market
He cited the immobilisation of 16 billion shares in June 2025, allegedly linked to the prospective buyer, saying the move unsettled the market.
“The immobilisation of 16Bn shares in June 2025 owned by the buyer was meant to undermine the share price by ostensibly sending a message of imminent supply,” Nyoro told the committee.
Nyoro further warned that the government could lose more than Ksh 80 billion due to conditions precedent imposed by regulators, which he said unfairly shift financial risk to taxpayers.
“Kenya cannot afford to lose over Ksh 80Bn on Conditions Precedent extended by the regulators. Bottomline: open the bid to International Markets, Kenya will definitely get more,” he stated.
Nyoro, however, urged Parliament to look beyond assurances and ensure the transaction delivers maximum value to the country, warning that lawmakers would be held accountable for the outcome.
“This is a decision that history will judge Parliament on,” he said.
His remarks come as the National Treasury moves forward with plans to sell a 15 per cent stake in Safaricom PLC to the Vodacom Group. The government says the transaction is intended to raise funds for development projects while easing pressure on public borrowing and taxation.
Treasury Cabinet Secretary John Mbadi, who appeared before the same joint committee of the National Assembly on Tuesday, January 13, 2026, said the share sale is expected to raise about Ksh 204.3 billion, with total proceeds projected at Ksh244.5 billion after factoring in an upfront dividend monetisation component.
If completed, the transaction would reduce the State’s shareholding in Safaricom to 20 per cent, while Vodacom Group’s stake would rise to 55 per cent, consolidating ownership that has previously been split between the Government of Kenya and Vodafone-linked entities.
Public concern
Amid growing public concern over the proposed sale, Safaricom has sought to reassure Kenyans that the company will remain firmly rooted in Kenya regardless of any changes in shareholding. Safaricom Chief Executive Officer Peter Ndegwa told lawmakers that the transaction will not affect the firm’s Kenyan identity, operations or regulatory oversight.
Ndegwa said Safaricom will continue to be licensed, regulated and governed under Kenyan law, with oversight from local institutions including the Communications Authority of Kenya, the Capital Markets Authority, the Central Bank of Kenya and the Competition Authority of Kenya.
He added that Safaricom will remain listed on the Nairobi Securities Exchange and continue to pay taxes in Kenya.
The CEO also emphasised that Safaricom’s board, management structure and day-to-day operations would remain unchanged, noting that the company’s strategic decisions would still be guided by Kenyan regulations and national interests.
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