Ndindi Nyoro Flags KSh 150 Billion Risk in Safaricom Stake Sale, Urges Open Bidding

By Brian Kiprono - Reporter

Kenya, 20 January 2026 - Kiharu MP Ndindi Nyoro has raised fresh concerns over the National Treasury’s plan to sell part of the government’s stake in Safaricom, warning that a restricted deal with Vodafone Kenya could short-change taxpayers by as much as KSh 150 billion.

Appearing before the Departmental Committee on Finance and National Planning on Tuesday, Nyoro questioned the decision to divest a 15% stake through a single-buyer arrangement, arguing that it locks out competitive pricing and undervalues one of the country’s most profitable assets.

He said opening the transaction to international competitive bidding would allow proper price discovery and deliver better value to the Exchequer.

“Why can’t we be patient for two months and get a higher price?” Nyoro asked the committee.

“If Kenya gets an additional Sh150 billion, everyone benefits.”

Beyond pricing, the legislator faulted the fiscal reasoning behind the proposed sale, describing it as a “securitisation of dividends” that runs contrary to the Public Finance Management Act.

Nyoro told the committee that dividends from the state’s existing 35 per cent shareholding in Safaricom are already factored into the current budget through the Appropriations Act and underpin projections in the Medium-Term Debt Management Strategy.

“We have securitised dividends for the next many years, yet in our long-term and medium-term planning as a country, they [are] already accounted for as revenue to the Consolidated Fund,” he said.

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He warned that disposing of the asset while still relying on its future income would distort revenue planning and weaken the government’s fiscal framework.

Nyoro also dismissed claims of urgency by the Treasury, insisting that a transparent tender process would not only protect long-term value but also support infrastructure financing without worsening the budget deficit.

His position echoes objections raised by the Consumer Federation of Kenya (COFEK), which has petitioned Parliament over the proposed sale, citing constitutional concerns, lack of public participation and the exclusion of local investors.

While COFEK focused on governance and process, Nyoro centred his case on the numbers, questioning whether the deal makes financial sense for the country.

The Treasury, in Sessional Paper No. 3 of 2025, has defended the sale of 6.01 billion shares to Vodafone Kenya at KSh 34 per share, saying the proceeds are needed to capitalise the Sovereign Wealth Fund and fund infrastructure projects.

Safaricom chief executive Peter Ndegwa has also backed the move, terming it a “shareholder realignment” that safeguards the firm’s governance and regulatory set-up.