Kenya could lose Sh80billion in Safaricom share sale, MP Ndindi Nyoro warns

Kiharu Member of Parliament (MP) Ndindi Nyoro has warned that the controversial sale of Kenya’s 15 per cent stake in Safaricom PLC could see the country lose up to Sh80billion.

While appearing before the Joint Committee on Finance and Privatisation of Parliament, Nyoro warned that the country stands to lose billions of shillings by not using a competitive international bidding process in the divestiture.

Separately, the Consumer Federation of Kenya (COFEK) has petitioned the National Assembly to halt the government’s proposed sale of Safaricom shares warning that the transaction risks handing over “systemic financial infrastructure” to foreign control without adequate public scrutiny.

COFEK’s objection centers on what it terms the “opacity and foreign preference” of the deal. The Federation questioned why the shares were structured as a block sale to an existing foreign strategic partner rather than being offered to Kenyan retail investors, cooperatives, or pension funds. They argued this structure contradicts the “legitimate expectation” that strategic assets should remain domestically owned.

“Safaricom is Kenyan success. Let us not export our few successes for a song when we can easily retain them,” the Federation stated in its submission.

Furthermore, the petition raised alarm over the valuation, specifically citing the “Ethiopia Factor”. With Safaricom Ethiopia currently in a capital-intensive growth phase, COFEK submits that the government is selling at a discount, effectively socializing the risks while denying Kenyan taxpayers the future upside of the subsidiary’s eventual profitability.

The committee has received conflicting testimony regarding the implications of the sale. Conversely to COFEK’s position, Safaricom CEO Peter Ndegwa appeared before the joint committee on Monday, Jan 19, 2026, assuring lawmakers that the transaction is a “shareholder realignment” that would not alter the company’s governance, identity, or regulatory oversight. Ndegwa emphasized that Safaricom would remain a Kenyan company subject to the Central Bank and Communications Authority, dismissing fears of “state capture” by foreign entities.

However, the Kenya Bankers Association (KBA) has offered a middle ground. In their submission, the bankers proposed a modification to the deal structure where 300.4 million shares would be reserved for the Kenyan public, with the remaining 5.7 billion going to Vodacom. The KBA argues this would deepen capital markets and broaden local ownership, addressing the very concerns raised by civil society regarding the exclusion of local investors.

COFEK’s presentation also pivoted to a broader critique of the Executive’s fiscal management, describing the sale as “asset stripping” intended to finance inefficiency and corruption. Referencing the “ill-fated Public Finance Bill 2024,” the Federation argued that the country is navigating a severe trust deficit and that the Treasury has failed to conduct the mandatory public participation required under Article 10 of the Constitution.

“Public participation is not noise… it is a constitutional requirement,” the submission read, directly countering recent remarks by the Treasury Cabinet Secretary.

In a submission presented today to the Departmental Committee on Finance and National Planning, the consumer watchdog argued that the sale, valued at approximately Sh244.5billion, is not merely a fiscal adjustment but a constitutional violation that threatens national economic sovereignty.

COFEK Secretary General Stephen Mutoro told legislators that Safaricom’s dominance in the mobile money sector through M-Pesa effectively makes it a critical national asset, rendering its privatization a matter of national security rather than standard commercial practice.

The Kiharu legislator, who urged the parliamentary watchdog not to adopt the government’s proposed process, faulted the Communications Authority of Kenya (CA) for allegedly initiating a Sh80 billion loss through a controversial waiver on the renewal of licenses, via a conditional precedent, prior to the transaction.

MP Nyoro, while delivering his submissions, told the parliamentary watchdog that the country would have benefited more had the exercise been subjected to an international competitive bidding process.

“We would just cut corners, sell government assets for free, and purport to be the only buyers in the market… who said he is the only buyer?” Nyoro posed.

The former Chairman of the National Assembly Budget Committee stated that each of the 6 billion Safaricom shares being traded to Vodafone should retail at Sh45 per share and not Sh34.

“We should not be discussing anything below Sh45 per share, but we have been held hostage by the buyer that we are now running out of breath,” he said.

The Kiharu legislator informed the joint parliamentary committee on Finance and Privatization that the Communications Authority should be held accountable for allegedly initiating a Ksh.80 billion loss through a controversial waiver on the renewal of licenses via a conditional precedent, prior to the transaction.

“On one license, we are losing Sh40billion due to a discount given only by the management of the Communications Authority. They passed this before the board even met,” said Nyoro.

Ndindi Nyoro alleged that parties who stand to benefit from the multibillion-shilling transactional costs in the partial divestiture of the government’s shareholding in Safaricom are private entities.

“What role are they playing for them to be paid 40% of the Ksh.3 billion?” he asked.

Other than the Kiharu MP, other stakeholders who submitted their memoranda included CBK Governor Kamau Thugge.

Thugge told the committees that the proceeds would go a long way in easing the country’s debt burden. The sale also received a nod from COTU.

Last week, the Institute of Certified Public Accountants of Kenya (ICPAK) warned that the valuation may not fully capture Safaricom’s future cash flows or its central role in Kenya’s digital economy, and called for greater transparency to strengthen public confidence in capital markets.

The transaction values Safaricom shares at Sh34 each and would see the Treasury earn about Sh204.3billion in addition to around Sh45billion for an advanced dividend payout.

This stance mirrors arguments previously advanced by the Law Society of Kenya (LSK) and the Opposition coalition, Azimio la Umoja, who have consistently challenged the legality of the 2023 Privatization Act.

The High Court had earlier declared sections of the Act unconstitutional for bypassing parliamentary oversight, a legal battle that continues to shadow the current disposal of assets like the Kenya Pipeline Company and KICC.

COFEK concluded its petition with a challenge to the National Assembly to avoid acting as a “conveyor belt” for Executive decisions, urging them to pause the transaction pending a forensic audit of the valuation.