Kiharu MP Ndindi Nyoro demands transparency over Safaricom share offloading
A member of parliament has launched a stinging attack on the government’s proposed sale of part of its Safaricom stake, warning that a rushed process could cost taxpayers billions.
Kiharu MP Ndindi Nyoro appeared before a joint sitting of the National Assembly’s Finance and National Planning Committee and the Public Debt and Privatisation Committee, where he urged MPs to demand transparency and broad public participation in the planned divestiture.
The government is seeking to sell 15 per cent of its stake in Safaricom to Vodafone affiliate Vodacom, a move Nyoro described as the largest transaction Kenya has handled since independence.
He told lawmakers that such a deal cannot be treated as routine, arguing that only an open national debate would guarantee value for money.
“The National Treasury and indeed the entire government must have the demeanor of a seller,” Nyoro said. “They must listen to Kenyans and adopt their views, rather than justify an inferior transaction.”
The second-term MP also raised concerns over who has been involved in negotiating the deal, claiming that individuals outside government may have taken part without clear authority.
“It is apparent that some of the people who participated in the negotiations, ostensibly representing Kenyans, are not public officers and are not officially contracted to act on behalf of the government,” he said, calling for full disclosure.
Nyoro further warned that the proposed valuation of Safaricom is far below its true worth. He noted that in 2021 — before the company’s expansion into Ethiopia — Safaricom shares were trading at Sh45 on the Nairobi Securities Exchange, valuing the firm at more than Sh1.8 trillion.
He argued that the valuation should now be higher, given that the Ethiopian investment is close to breaking even operationally.
Basing the sale on current NSE prices, he said, would be misleading, pointing to Kenya Power as an example of a company with assets worth over Sh400 billion but a market value of just Sh27 billion.
“Would it be prudent to sell based on such an erratic benchmark?” he asked.
Instead of a hurried sale, Nyoro suggested that the government should consider restructuring Safaricom to unlock more value, including a possible demerger into three separate entities.
“The sum total of the three entities would be valued much higher than the whole,” he said. “Why the hurry to sell our most prized asset at a discount?”
He concluded by demanding clarity on how the proceeds from any sale would be used, urging the government to spell out which development projects would benefit from the funds.
