The Lower Eastern Times Opening The Third Eye
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A new petition is calling on Parliament to halt the government’s planned sale of a 15% stake in Safaricom, raising concerns about transparency, valuation, and potential long-term financial risks.
Lawyer Francis Wanjiku has submitted a memorandum to the National Assembly’s Finance and Privatization committees, warning that the State could be giving up significant future value without fully informing the public.
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According to the memo, the government intends to offload part of its 35% shareholding to Vodacom for about Sh244.5 billion—comprising Sh204.3 billion from the actual sale and Sh40.2 billion as upfront payment for future dividend rights.
Wanjiku questioned the pricing, noting that the Sh34 per share offer is 23.6% higher than the six-month VWAP of Sh27.50, yet no independent valuation or fairness opinion has been shared.
The petition warns that the lack of third-party assessment could signal fiscal pressure and deter investor confidence in future asset disposals. It also challenges the plan to monetize future dividends, estimating that the State may lose about Sh15.5 billion compared to projected cumulative dividends of Sh55.7 billion.
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To protect long-term revenue, the lawyer proposes alternatives such as phased monetization or revenue-sharing models. Wanjiku further calls for full public disclosure of all valuation models, underlying assumptions, and advisor qualifications, as well as negotiation of safeguards to secure potential future gains from Safaricom.
Parliament’s Finance and Privatization committees are now expected to examine the memorandum as part of the public participation process in the proposed sale.
