MP Nyoro Sounds Alarm Over Safaricom Stake Sale, Warns State Could Lose Billions

By : Mweru Mbugua 

Kiharu MP Ndindi Nyoro has raised concerns over the government’s plan to sell a 15% stake in Safaricom to Vodacom, warning it could cost the State billions

Kiharu Member of Parliament Ndindi Nyoro has criticized the government’s decision to offload a 15% stake in Safaricom to Vodacom Group Limited, valued at Ksh. 244.5 billion. Speaking to the press on Thursday, Nyoro described the move as financially reckless, potentially hurting public coffers

The sale involves 6,009,814,200 ordinary shares priced at Ksh.34 each, which will reduce the State’s stake in Safaricom from 35% to 20%. Nyoro highlighted that the government previously sold shares at Ksh.45 before investing in Ethiopia, licensed in 2021, signaling a potential loss in value

“There is no way the government can sell Safaricom at less than Ksh.2.5 trillion unless self-interest or incompetence is at play. The government is effectively siding with buyers while exposing Kenyans to losses,” Nyoro stated

Under the planned sale, the government will receive Ksh.40.1 billion upfront for the right to future dividends of Ksh.55.7 billion from the remaining shares. Nyoro criticized this approach, arguing it prioritizes short-term revenue over long-term economic growth

He suggested that the government consider divesting subsidiary business interests or creating separate entities within Safaricom for sale, rather than reducing its core stake

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The acquisition awaits regulatory approvals from Kenyan, South African, and Ethiopian authorities, including clearance from the Capital Markets Authority to confirm Vodacom’s exemption from a mandatory takeover offer to minority shareholders

Nyoro warned that rushing the sale could have lasting financial consequences for the nation