MP Nyoro Warns Safaricom Shares Offload Could Cost State Billions

Kiharu MP, Ndindi Nyoro.

Kiharu MP Ndindi Nyoro has raised strong objections to the government’s plan to offload a 15% stake in Safaricom to Vodacom Group, warning that the move could result in massive financial losses for the country.

The proposed transaction involves selling 6.01 billion ordinary shares at KSh34 each, amounting to KSh244.5 billion. If approved, the government’s ownership in Safaricom would drop from 35% to 20%, handing Vodacom effective majority control of the telecom giant. As part of the deal, the State would also receive an upfront payment of about KSh40.1 billion in exchange for surrendering future dividends projected at KSh55.7 billion.

Nyoro criticized the plan sharply, arguing that the shares are being sold at a gross undervaluation. He noted that Safaricom’s share price previously traded around KSh45 even before its entry into Ethiopia, and insisted that the company’s value is far higher than what the State is willing to accept. He described the sale as a short-sighted attempt to raise quick cash at the expense of long-term national interests, adding that the decision “can only be driven by self-interest or incompetence.”

According to the MP, the government should explore alternative revenue avenues such as selling non-core assets or restructuring Safaricom into separate entities, which he believes would yield greater value without compromising strategic national control.

The planned offload has sparked a broader national debate over whether the government should prioritize immediate revenue flow or safeguard long-term economic stakes. Should the deal go through, Vodacom would tighten its grip on Kenya’s most profitable company a move that some analysts say could have lasting implications for the country’s economic sovereignty.

The sale still awaits multiple approvals, including from regulators in Kenya, South Africa, and Ethiopia. The Capital Markets Authority will also review Vodacom’s request for exemption from issuing a mandatory takeover offer to minority shareholders. Until then, the future of the government’s stake in Safaricom remains uncertain, even as political and economic voices continue to weigh in on the controversial proposal.

Reporting by: Babz Abdul Raheem N.
Date: December 07, 2025