Airtel Pushes for Call Rate Reforms as Treasury Defends Single-Bidder Safaricom Sale

While Airtel focused on market reform, its comments coincided with rising scrutiny of the government’s planned sale of its 15 % stake in Safaricom Plc, a transaction expected to raise about Sh204.3 billion ( US$1.6 billion). The sale, reportedly to Vodafone Kenya, has been criticised by the Institute of Certified Public Accountants of Kenya (ICPAK) and other stakeholders for being conducted through a single- bidder process rather than an open competitive tender.

They argue this limits price discovery and may not maximise returns for taxpayers. In response, the National Treasury defended the approach, saying competitive bidding could lead to lower offers and greater valuation risk. Treasury officials also cited past challenges with private equity buyers in the telecoms sector and concerns that a public offer on the Nairobi Securities Exchange might strain local capital markets.

They insisted continuity, with Vodafone already a shareholder, justified the choice. There is also political and public pushback: lawmakers and commentators have called for broader public participation and competitive bidding to ensure fair valuation, with some arguing the process should benefit local investors and Kenyans at large.

Airtel’s concerns highlight a broader debate in Kenya’s telecom sector: while Safaricom’s dominance has helped drive rapid adoption of mobile services and financial inclusion, its scale also creates structural advantages in pricing and traffic flows that competitors argue entrench market power and squeeze future competition.

Critics of the share sale worry that without robust regulatory reform, including on interconnection rates, spectrum allocation, and mobile money rules, ownership restructuring alone won’t produce more competitive outcomes. The outcome of these debates has real implications for consumers and the broader economy.

Lower termination fees could reduce voice call prices nationwide, while reforms in mobile money regulations could dilute market dominance and expand financial inclusion. At the same time, how the government manages the Safaricom stake sale, balancing value for taxpayers with competitive safeguards, could set precedents for future privatisations and foreign investment.