Treasury Cabinet Secretary John Mbadi has clarified why the National Treasury has not initiated the sale of the government’s 15 per cent stake in Safaricom to the Nairobi Securities Exchange (NSE) for public purchase.
Mbadi spoke on a Wednesday morning radio show, December 10, 2025, about growing controversy surrounding Vodacom’s purchase of a stake from the company.
He observed that even though Kenyans could theoretically purchase the shares if the stake were listed on the NSE, Vodacom was more suitable for the acquisition due to its established connection with Safaricom and extensive experience in the telecommunications industry.
In his view, the company has the ability to assume risks that newly established competitors may find difficult to handle. The share price on the National Stock Exchange is substantially lower than the amount the government initially received.
Mbadi also contended that listing the stake on the NSE would not have been financially astute.
The share price currently listed on the local exchange is substantially lower than the amount secured by the government in its agreement with Vodacom.
Selling a substantial block of shares to the public would have increased market supply, possibly resulting in a price decrease and further reduced returns.
The stock prices in the NSE are significantly lower than what we paid. If we had taken it to the market, we would have obtained it at a discounted share price, as we were selling a larger quantity of shares. “We create more shares than there is demand for, which remains the same; the price would even decrease,” Mbadi stated.
Saturation of share ownership
It was also mentioned that the government is in the process of preparing to list another significant state-owned company, the Kenya Pipeline Company (KPC), on the Nairobi Stock Exchange (NSE).
Introducing another large asset at the same time, he stated, would simultaneously flood the market and further decrease share values.
Another company is set to join the market, and it will be listed on the Nigerian Stock Exchange. Investing another asset in the KPC would likely result in market saturation, and it wasn’t a prudent decision.
Stabilising Ksh
He also pointed out that selling the shares to Vodacom has another advantage: the payment will be made in foreign currency.
According to him, it is more beneficial to retain the stake than sell it to local investors, as foreign currency inflows increase Kenya’s foreign exchange reserves and help stabilise the shilling.
Selling shares to Vodacom also offers another advantage, namely that even with the payment terms, the payment will be made in hard currencies, as opposed to selling the shares to the domestic market.
Forex reserves can be strengthened by having hard currencies, thereby aiding in stabilizing the shilling even further.
From an economic and fundamental perspective, it makes more sense for Mbadi to sell the stake to Vodacom rather than offering it on the local market.
Kiharu Member of Parliament Ndidi Nyoro recommended adopting a competitive process, soliciting offers from multiple investors. She maintained that this method would have resulted in a higher share value for the government compared to a direct sale to a single entity.
