Safaricom has pushed back against criticism over its Ethiopian expansion and the pricing of the government’s proposed stake sale, with chief executive Peter Ndegwa telling MPs that the telecoms firm had no hand in setting the KSh34-per-share price agreed between the State and Vodacom.
Appearing before a parliamentary committee, Ndegwa said the planned sale of a 15 percent government stake to Vodacom was a shareholder-to-shareholder transaction, negotiated directly by the two owners. The deal would raise Vodacom’s holding to about 55 percent, handing it majority control, but still requires parliamentary approval.
Lawmakers have questioned both the valuation and the decision to bypass a public offer, arguing that a market-based process could have allowed wider Kenyan participation and potentially achieved a higher price. Ndegwa maintained that management’s role was limited to ensuring regulatory, governance and disclosure compliance, adding that Treasury officials and advisers were best placed to explain how the price was reached.
The government has defended the valuation, citing prevailing market conditions, Safaricom’s strong domestic performance led by M-Pesa, and the risks tied to regional expansion.
Also Read: African Impact Challenge Opens Cohort 6 Applications for Kenyan Health Tech Startups
MPs also trained their sights on Safaricom’s Ethiopian venture, which remains loss-making and continues to draw shareholder funding, with concerns that the drag from the project may have depressed the share price. Ndegwa described Ethiopia as a long-term growth bet rather than a quick-profit play, noting that heavy upfront investment is typical in telecoms build-outs.
He said the Ethiopian unit had made steady progress in network rollout, customer growth and mobile money infrastructure, and stressed that the board and shareholders remained committed to the market despite short-term losses.