Ndindi Nyoro seeks annulment of Safaricom stake sale

Kiharu MP Ndindi Nyoro has intensified his opposition to the government's sale of its stake in Safaricom, calling for the transaction to be annulled over what he described as deliberate share price manipulation that denied Kenyans billions of shillings in value.

Speaking during a press briefing on Tuesday, Nyoro accused those involved in the transaction of suppressing Safaricom's share price for months before the government concluded the sale, only for the stock to rise immediately after the deal was completed.

He argued that the movement in the share price vindicated concerns that the shares had been sold below their true market value.

"It is clear that the transaction price the government put on the table was underwhelming and disadvantageous to Kenyans. We must pursue all available avenues to ensure this transaction is annulled," Nyoro said.

The MP maintained that despite an active appeal before the courts challenging the sale, the government hurried to complete the transaction and receive payment before the judicial process had been exhausted.

According to him, the subsequent rise in Safaricom's share price demonstrates that the transaction undervalued one of Kenya's most valuable public assets.

"It is no coincidence that after the transaction closed, the share price immediately started climbing beyond Sh34. The markets have already exposed the government's incompetence," he said.

Nyoro announced that he would formally write to the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE) demanding investigations into trading activity on Safaricom shares over the last eight months.

"It is very clear there has been price manipulation and price suppression pending the transfer of the shares. CMA and NSE must investigate every trade that has taken place during that period to establish whether there was manipulation,” he said.

The legislator claimed Kenya had already lost more than Sh12 billion based on the current market price of the shares, arguing that the actual loss could be significantly higher if the transaction had been subjected to a competitive bidding process.

"If we had opened this process to competitive bidding involving both local and international investors, Kenya could have realised substantially more value. We left money on the table despite urgently needing those resources," he said.

Nyoro dismissed suggestions that the increase in Safaricom's share price was a normal market reaction after completion of a major transaction.

Drawing comparisons with ongoing acquisition deals involving NCBA and East African Breweries Limited (EABL), he argued that block transactions are ordinarily concluded at a premium above prevailing market prices rather than at a discount.

"In every comparable transaction, the off-market price is higher than the trading price. What happened with Safaricom is the exact opposite. We sold below market value," he said.

He further alleged that interested parties artificially increased the supply of shares in the market to keep prices depressed before the government completed the transaction.

According to Nyoro, if investigations establish that the transaction was founded on a manipulated market, courts have powers to nullify the sale and allow a fresh process that would deliver better value for taxpayers.

"The fact that money has already changed hands does not make the transaction irreversible. If the process is found to have been flawed, the transaction can still be annulled and the country given an opportunity to realise the true value of the shares," he said.

The Kiharu MP also put investment banks involved in the transaction on notice, saying their financial statements would come under public scrutiny to determine whether there were unusual payments connected to the deal.

"We shall be examining their financial reports carefully. If there are any outward payments linked to this transaction, they must explain them to Kenyans," he said.

Nyoro said he would continue supporting the ongoing court challenge against the transaction by sharing information where necessary, insisting that public assets should only be disposed of through transparent and competitive processes.

Separately, the legislator raised concern over the conduct of campaigns in the ongoing by-election, accusing the Independent Electoral and Boundaries Commission (IEBC) of failing to act against violence and electoral malpractice.

He warned that failure by the commission to address the alleged violations could undermine public confidence ahead of the 2027 General Election.

"What is happening in the by-election should concern every Kenyan. If IEBC remains silent in the face of violence and blatant violations, it sends the message that anything is permissible during elections," he said.