KSh Billions at Stake in Kenya: Nyoro Blasts Government Over Safaricom Share Sale

 






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KSh Billions at Stake in Kenya: Nyoro Blasts Government Over Safaricom Share Sale

In December 2025, the Kenyan government agreed to sell 15% of its Safaricom PLC shares to Vodacom Group at KSh 34 per share. While this move was presented as a strategic cash-raising decision, MP Ndindi Nyoro warned that the state may be losing billions of shillings in long-term value.

For more context, check out my previous posts: MMFs vs Bank Savings | Kenya’s Safaricom Sale Explained

Timeline of Key Events

Date Event
Early Dec 2025 Government announces sale of 15% Safaricom stake to Vodacom at KSh 34/share
Announcement Total ~6.01 billion shares, estimated inflow ~KSh 244 billion including dividend compensation
Public Reaction MP Ndindi Nyoro warns about potential billions lost and “underselling” a national asset
Government Response Treasury defends the sale, noting it includes a premium over recent market price

Nyoro’s Perspective

  • Potential Undervaluation: Historical trading shows Safaricom shares have been higher than KSh 34, suggesting long-term losses.
  • Strategic Importance: Safaricom controls M-Pesa and mobile infrastructure; losing influence could affect national interests.
  • Future Dividends: Proceeds from dividends on the sold 15% will go to Vodacom, not the Kenyan state.

Government’s Side of the Story

  • Premium Over Market Price: Above recent trading values, offering short-term cash.
  • Dividend Compensation: Upfront payment (~KSh 40.2 billion) offsets potential future earnings.
  • Funding National Projects: Proceeds will support roads, infrastructure, and development initiatives.

Risks and Opportunities

Risks

  • Long-Term Value Loss: If Safaricom grows faster than projected, selling cheaply could cost the nation.
  • Reduced Government Influence: From 35% to 20%, reducing control over strategic decisions.

Opportunities

  • Immediate Liquidity: KSh 244 billion can fund public projects.
  • Diversification: Converts shares into cash for higher-impact benefits.

Safaricom Sale Snapshot

Metric Value
Shares Sold6,009,814,200 (15% stake)
Price per ShareKSh 34
Upfront Dividend Compensation~KSh 40.2 billion
Total Cash Inflow~KSh 244 billion
Government Remaining Stake20%

About the Author

I’m Postine Ngeli, an educator and finance enthusiast. Read more insights on MoneyMarketHubKenya.

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