President William Ruto has rejected claims by Kiharu MP Ndindi Nyoro, who opposes the government’s planned sale of a 15% stake in Safaricom, calling his opposition “political conmanship.” The President’s sharp rebuke escalates tensions within the ruling Kenya Kwanza administration over the privatization of state assets, particularly the proposed sale to Vodafone Group.
Political Divide Over Share Valuation
The row centers on the sale of approximately 6 billion Safaricom shares. Nyoro, a senior MP and head of the Budget and Appropriations Committee, insists the sale price of Sh34 per share is too low, claiming it undervalues the country’s most profitable asset. He argues that the sale should be postponed and conducted through a transparent international bidding process, asserting that the government’s decision could cost the country billions in lost revenue.
“We cannot sell the family silver for peanuts,” Nyoro said, demanding a floor price of Sh45 per share. His stance challenges the government’s decision, which he deems politically motivated rather than economically justified. He also expressed concerns that selling to Vodafone, a company that already holds a significant stake, would hinder competition and prevent global investors from raising the sale price.
However, President Ruto’s administration has defended the sale, framing it as a necessary step to unlock capital for vital infrastructure projects. Treasury Cabinet Secretary John Mbadi echoed the President’s sentiment, stating that the sale is “above board” and reflects current market realities. “We have secured the best possible value from this transaction,” Mbadi said, adding that critics are politicizing the issue.
The sale is projected to raise approximately Sh204 billion based on the proposed share price, with a variance of Sh66 billion if Nyoro’s preferred price of Sh45 per share were to be implemented. The funds are intended to support the government’s Affordable Housing Programme and other infrastructure projects, positioning the sale as a tool to fund future development rather than a short-term financial maneuver.
As the debate intensifies, political analysts note that Nyoro’s defiance signals a deeper rift within the ruling coalition. While Nyoro’s criticism is gaining traction among his supporters, particularly in the Mount Kenya region, it puts him on a collision course with the Presidency, as Ruto has made it clear that the sale will proceed as planned.
At a meeting with graduate interns at State House, Nairobi, Ruto lashed out at the critics, accusing them of misleading the public for political gain. “We must have the courage to convert mature assets into new opportunities,” the President stated, dismissing opposition as an attempt to derail his administration’s development agenda.
The controversy over the Safaricom share sale reveals deep fractures within the government’s ranks and highlights the growing influence of Nyoro, who has positioned himself as a defender of the common citizen against elite interests. With Kenya’s political future in mind, the outcome of this dispute could have significant implications for the upcoming election cycle.
