The government’s move to sell part of its stake in Safaricom has received backing from the Central Bank of Kenya, which assured Parliament that the deal will not undermine the country’s financial system.
The plan comes amid growing debate over whether the valuation of the sale protects Kenya’s long-term interests.
CBK Governor Kamau Thugge told the National Assembly’s joint committee on Finance and National Planning and Public Debt and Privatisation that the sale of a 15 percent government stake to South Africa’s Vodacom Group is unlikely to affect M-Pesa, the mobile money service holding more than Sh250 billion in customer funds.
“Formal CBK approval is still under assessment, but the proposed transaction will not compromise the integrity of the national payment system provided all prudential safeguards are enforced,” he said.
He added that the inflow from the sale could strengthen foreign reserves, reduce domestic borrowing, and ease interest rates, offering the government room to spend without raising debt levels.
The agreement, signed by the National Treasury, sets the price at Sh34 per share, valuing the transaction at Sh204.3 billion. Vodacom, which currently owns 35 percent of Safaricom, would increase its stake to 55 percent if it also buys an additional five percent from its parent company, Vodafone Group. Following the sale, government ownership would shrink from 35 percent to 20 percent.
Despite CBK’s assurance, some legislators questioned whether the deal represents the best value for the country. Former Budget Committee chair Ndindi Nyoro said the pricing and the selection of buyers needed more transparency.
“The day of the announcement, it came in wholesomely. Who determined that price? Who are these people that were hired?” he asked, warning that generous terms could result in major losses. “Safaricom is having blockbuster increments in profit. We are selling our cow just when it is coming out of the forest,” Nyoro added, calling for the government to consider a global sale process
