National Treasury Cabinet Secretary John Mbadi has rejected claims by Kiharu MP Ndindi Nyoro that the government is undervaluing its 15 percent stake in Safaricom PLC.
Speaking on Thursday, December 4, Nyoro argued that Safaricom shares traded at around Ksh45 in 2021 before the company’s investment in Ethiopia and that this earlier valuation placed the firm at about Ksh1.8 trillion.
He maintained that the government should not be selling shares based on a valuation lower than Ksh2.5 trillion, suggesting that doing so would indicate either poor judgment or ulterior motives and would result in a major financial loss for the country.
Treasury CS Mbadi Refutes Ndindi Nyoro’s Claims on Safaricom Stake Valuation. Photo: Courtesy.
Responding on Friday, December 5, Treasury CS John Mbadi clarified that Safaricom’s overall valuation is separate from the market value of its shares.
While the company may be worth around Ksh2.5 trillion, he said the government must base the sale on actual share prices, which averaged Ksh34 over the past six months, including a premium.
Mbadi also assured that the sale of the 15 percent stake will not lead to staff redundancies.
He added that key leadership roles including the CEO, board chair and most independent directors will remain in Kenyan hands.
Safaricom confirmed receiving Vodafone Kenya’s notice of intention to acquire the government’s 6 billion shares, valued at Ksh204.3 billion.
The state will also receive an additional Ksh40.2 billion in lieu of future dividends, placing the total value of the deal at Ksh244.5 billion.
Once completed, Vodafone’s stake will rise to 55 percent, while the government and public investors will retain 20 percent and 25 percent respectively.
