from MARIA MACHARIA in Nairobi, Kenya
Kenya Bureau
NAIROBI, (CAJ News) – ONE of the most vocal critics of the Kenya government’s proposed sale of a 15 percent stake in Safaricom to the Vodacom Group has officially petitioned Parliament to look into the now divisive transaction.
Ndindi Nyoro, the Member of Parliament of the Kiharu constituency, in his memorandum to the Joint Committee on Finance and National Planning together with the Committee on Public Debt and Privatisation, believes Kenya must open up the transaction to international bidders.
The memorandum presented to the legislative arm of government on Tuesday also argues that the valuation is not commensurate to what Safaricom is worth.
“The proposed sale of a 15-percent stake of the government of Kenya-owned Safaricom is a transaction that must be subjected to thorough public participation and debate, given that it is the largest in both size and quantum that our country has handled since independence,” read the memorandum.
Nyoro argues robust debate would guarantee the highest value for money.
In December, the National Treasury agreed to sell the stake for about US$1,6 billion (Sh204,3 billion) at Sh34 per share ($0,26). The government would subsequently hold a 20 percent stake.
The aggrieved legislator argues the valuation is not commensurate to what Safaricom PLC is since the company was valued at Sh1,8 trillion ($13,95 billion) in 2021 before the investment in Ethiopia.
“It should be worth more now,” Nyoro, who is also an entrepreneur, said.
He described a meeting with the committee leaders, Kuria Kimani and Shurie Abdi Omar, on Tuesday as “cordial.”
A commentator, Maiteri wa Mbogo, agreed with the legislator.
“Opening to international bidders just makes sense. We will get better value and transparency. The valuation concerns are spot on. Let us not shortchange ourselves on such a critical asset,” he said.
The National Treasury last week initiated the process of selling the stake.
On Tuesday, Safaricom closed at Sh29,75 ($0,23) on the Nairobi Securities Exchange (NSE), a slight increase from the previous day.
– CAJ News