ICPAK questions Sh34 Safaricom share price in State divestiture plan

ICPAK officials give their views regarding the sale of Safaricom shares at Glee Hotel, Kiambu Road on January 14,2026. [Elvis Ogina, Standard

The Institute of Certified Public Accountants of Kenya (ICPAK) has raised concerns over the government’s plan to sell a 15 per cent stake in Safaricom to Vodacom at Sh34 per share, questioning the valuation methodology and long-term fiscal impact.

During a joint sitting of the National Assembly Finance and Privatisation Committee Wednesday, ICPAK Chairperson Elizabeth Kalunda warned that the pricing could fuel public perception that a strategic national asset is being undervalued.

While the Sh244.5 billion transaction would provide immediate resources for the 2026 budget without increasing public debt, ICPAK argued that the Sh34 offer sits significantly below Safaricom’s 2021 all-time high of Sh44.7.

“Monetising future dividends means future administrations lose a dependable revenue source,” Prof Kalunda stated.

She further noted that the deal would increase Vodafone/Vodacom’s shareholding to 55 per cent, granting them majority control and potentially reducing the government’s leverage in strategic decision-making.

Kalunda also criticised the use of a private transaction over a public offering, suggesting it could undermine public confidence in the Privatisation Act 2025 and complicate future privatisation efforts.

“Increased Vodafone ownership may enhance access to global expertise, technology transfer and operational best practices, benefiting Safaricom’s operations in Kenya and Ethiopia, while the transaction signals implementation of the Privatisation Act 2025 and demonstrates commitment to leveraging private capital for development,” said Prof Kalunda. 

In contrast, heads of key regulatory bodies defended the transaction as a strategic win for Kenya’s economy.

Capital Markets Authority (CMA) CEO Wycliffe Shamiah argued the Sh34 price is competitive and only achievable through a "block sale."

He noted that the market has already reacted positively, with share prices surging since the announcement, signalling investor confidence.

“Divestiture of non-core commercial functions allows the government to concentrate managerial capacity and public expenditure on priority service areas, including infrastructure, health and education,” said Shamiah.

Competition Authority of Kenya (CAK) CEO David Kemei stated the divestiture occurs at the shareholder level and will not negatively impact the existing market structure or regional competition within the COMESA region.

Communications Authority (CA): CEO David Mugonyi confirmed that Safaricom has requested approval for the shareholding change, noting that there are no legal thresholds for local shareholding that would block the deal.

 Despite the projected benefits—including boosted foreign exchange reserves and seed capital for the National Infrastructure Fund—industry stakeholders are calling for strict oversight.

Fiona Asonga, CEO of the Technology Service Providers of Kenya (TESPOK), urged Parliament to establish a post-divestiture monitoring framework.

She emphasised the need for "golden share" provisions to protect national security and data sovereignty, given the sensitive nature of the telecommunications sector.

ICPAK urged the government to treat the sale of strategic assets as a "last resort" and to prioritize privatization methods that revitalise the Nairobi Securities Exchange (NSE) through public listings rather than private treaties.