The Lower Eastern Times Opening The Third Eye
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Former presidential economic adviser Moses Kuria has downplayed the growing uproar over a potential Safaricom stake sale triggered by Kiharu MP Ndindi Nyoro, saying the discussion is missing the real problem.
Kuria argues that the focus on Safaricom distracts from deeper structural weaknesses in Kenya’s capital markets, particularly the long-standing undervaluation of companies listed on the Nairobi Securities Exchange (NSE).
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Posting on X, Kuria said the Safaricom conversation is “the wrong discussion,” pointing out that most NSE-listed firms remain significantly undervalued. He questioned why Safaricom’s share price has dropped from Sh45 three years ago to Sh34 today despite sustained profitability.
He said the issue is not Safaricom, but the overall state of the equities market—highlighting low liquidity, weak investor activity and the fact that the 71-year-old NSE has only 62 listed firms.
“Nothing much has changed since I first joined the trading floor 33 years ago,” Kuria said, calling for broad reforms to boost liquidity, rebuild confidence and strengthen Kenya’s capital markets, which have suffered from reduced foreign investment, currency instability and weak local demand.
Kuria urged policymakers to shift their focus from individual companies to the structural challenges limiting market growth.
Nyoro, whose comments reignited the Safaricom debate, has criticized the planned sale of the government’s shares—equivalent to more than 6 billion shares at Sh34 each—which would cut the State’s stake from 35% to 20%.
He warned that selling now is a financial misstep, arguing the government previously sold at Sh45 and invested in Safaricom’s Ethiopia venture. Nyoro claims the current valuation severely undervalues the company and risks major losses for taxpayers.
Under the proposed deal, the State would receive about Sh40.1 billion upfront in exchange for Sh55.7 billion worth of future dividends it would have earned from its remaining shares.
