The Central Bank of Kenya (CBK) has thrown its weight behind the proposed sale of the Government’s 15% stake in Safaricom PLC, framing it as a strategic solution to Kenya’s infrastructure financing challenges.

With constrained fiscal space, weak revenue performance, and declining concessional financing, CBK sees the divestiture as a “positive and innovative financing mechanism” that avoids further debt accumulation.

KES 244 Billion Windfall to Ease Domestic Borrowing and Interest Rates

CBK estimates the transaction could generate approximately KES 242.8 billion, which would reduce the government’s reliance on domestic borrowing. This, in turn, is expected to lower interest rates and unlock private sector credit.

“This will help reduce interest rates and support private sector credit growth thereby enhancing productivity,” Dr. Kamau Thugge, Governor of the Central Bank noted before the Departmental Committee on Finance and National Planning and Public Debt and Privatisation to share perspectives on Safaricom’s share sale to Vodacom.

USD 1.6 Billion Inflows to Strengthen Forex Reserves and Stabilize the Shilling

The Bank projects that foreign exchange inflows from the sale could lift Kenya’s reserves to cover up to 6.2 months of imports, up from the current 3.9 months.

“This will provide a buffer against short-term shocks in the foreign exchange market and help stabilize the exchange rate,” CBK states, adding that the move will enhance investor confidence and reduce external refinancing risks.

CBK concludes that the divestiture supports Kenya’s medium-term fiscal consolidation path, helping the country move toward its debt anchor of 55% Net Present Value (NPV) of debt to GDP. “By avoiding a further build-up of debt, this innovative financing will help us move towards a sustainable debt position,” the Bank affirms.

Kenya Parliament Questions Safaricom Stake Sale Transparency

MP Ndindi Nyoro Challenges Valuation and Sale Process

Nyoro: NSE Market Price Is “Naïve and Value-Destructive”

Hon. Ndindi Nyoro, MP for Kiharu Constituency, on the other hand, strongly criticised the valuation basis of the transaction, arguing that reliance on the Nairobi Securities Exchange (NSE) market price is flawed.

“It would be very incompetent for Kenya to use the stock market negotiations with market price as the basis,” he said, citing examples of undervalued firms like Kenya Power, KenGen, and Kenya Re.

Proposal to Unbundle Safaricom into Telco, Fintech, and Towers

Nyoro recommends a strategic restructuring of Safaricom into three separate entities—Telco, Financial Services (including Mobile Money), and Towers—before any sale.

“The sum total of the three entities would be valued much, much higher than the whole,” he argues, suggesting this would unlock greater value for the public.

However, Mohamed Wehliye, MBS, a Central Banker on X argued that:

“Safaricom demerger is a terrible idea. The bank will be a 2nd tier bank at best and the telco will suffer without its financial arm. Safaricom is Safaricom because of the synergy that is created by the 2. Don’t think 4/2 is going to be 2 + 2 here. It will end up 1+1!

Call for Global Cross-Listing and Competitive Bidding

To improve price discovery and attract global investors, Nyoro proposes listing Safaricom or its unbundled entities on a mature exchange like the London Stock Exchange. He also calls for an open international bidding process, warning that a preferential sale to existing shareholders undermines governance and value.

Our Memorandum as presented today before the joint Committee of Finance & National Planning and Public Debt & Privatisation on the Proposed sale of GoK’s 15% stake in Safaricom, Nairobi, Kenya.

1. Kenya must open up the transaction to international bidders.

2. The valuation is… pic.twitter.com/z2Gm3b3QCI

— Ndindi Nyoro (@NdindiNyoro) January 20, 2026

Block Transactions Show Premiums of 175%–300%, Nyoro Says

Nyoro points to historical block transactions such as REA Vipingo and Bamburi Cement, which fetched premiums of up to 300% over market price. “In this transaction, we are selling the asset at a discount on the highest traded price,” he asserts, urging the government to benchmark against control premiums rather than depressed market valuations.

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