Ndindi Nyoro: Market price a facade in Safaricom sale debate
By Kenneth Mwenda, December 9, 2025Kiharu MP Ndindi Nyoro has renewed his criticism of the government’s plan to sell a 15 per cent stake in Safaricom, saying the State risks undervaluing one of Kenya’s most important companies.
In a detailed post on X on Tuesday, December 9, 2025, Nyoro argued that using the current market price as the reference point for the transaction is a facade that would deny Kenyans fair value.
Nyoro said the government must seek the right and optimal value for the stake and questioned whether the Nairobi Securities Exchange (NSE) reflects the true worth of major companies. He pointed out that several listed firms trade far below what he considers their real value, citing this as proof that Safaricom should not be priced solely based on its share price.
He gave examples from the market to show the gap between asset values and market valuations. He noted that Kengen has assets of more than Ksh500 billion but trades at a valuation of around Ksh55 billion. KCB’s valuation is also below its book value, while Kenya Re, Total Kenya, Car & General and Kenya Power all trade far lower than what their assets or profits might suggest.
Nyoro argued that if these firms are undervalued, the same applies to Safaricom, especially when the market has been bearish for long periods. He said using market levels to guide a bulk sale creates room for undervaluation and gives buyers an advantage at the expense of the public.
He also questioned whether there has been information symmetry in Safaricom trading and whether the stock market can be relied on as a perfect measure of value.
“Why base the sale of a block share of Safaricom at market price?” he asked.
Nyoro wants the government to open the sale to multiple bidders, including other telecommunications companies, saying competition would push up the price. He believes secrecy around the transaction will only fuel suspicion and reduce Kenya’s bargaining power.
“If the bids are opened to other Telcos and bidders, Kenya will get the best value. Open up the process, remove secrecy and let Kenya get the best out of it,” he said.
Nyoro demands fair process
Nyoro has raised similar concerns in recent days. On Sunday, December 7, he told a church gathering in Kiharu that selling shares directly to a single company, such as Vodafone, was unfair to Kenyans. He said competitive bidding would ensure the country receives full value for the 35 per cent shareholding the government currently owns.
He claimed the sale process had involved people who may not be government employees or authorised negotiators. He warned this could affect transparency and the final price.
Treasury Cabinet Secretary John Mbadi has dismissed Nyoro’s claims. Mbadi said the MP is confusing the valuation of a company with the valuation of shares. He explained that the government relied on Safaricom’s six-month average price and added a premium, leading to a Ksh34 per share valuation. The State plans to sell six billion shares for Ksh244.5 billion.