Today’s major financial story making waves across Kenya is the sale of the government stake in Safaricom. When news breaks about multi-billion-shilling government transactions, it is easy to view them as distant boardroom decisions. But when public assets are involved, every citizen has a stake in the outcome. The government does not own anything; the citizens do.
A recent analysis by the Kenya Institute of Public Policy Research and Analysis (KIPPRA) of the state’s sale of a major stake in Safaricom Plc to Vodacom Group Ltd of South Africa revealed a staggering finding. Kenya taxpayers reportedly lost out on billions of shillings due to undervaluation and missed valuation recommendations.
We are left with many questions: What actually happened in this transaction? How does the sale affect everyday taxpayers?
In this article, we will also discuss seven practical steps that Kenya citizens can take to demand accountability and protect public wealth. It is their wealth.
What is the Issue with the Safaricom Deal?
The National Treasury planned to sell a 15 percent government stake in Safaricom to South Africa’s Vodacom Group. The aim was to raise funds to plug budget deficits and manage public debt. The government settled on a price of kshs 34 per share.
However, independent public policy analysis had a different story. According to valuations by the KIPPRA, the shares were valued higher. The recommendations suggested a minimum price of kshs 36.38 per share as the absolute minimum per-share price.
By settling for a lower price per share, analysts estimate that taxpayers missed out on roughly kshs 14.3 billion on the 15% (6 billion shares) sold to the Vodacom Group Ltd (6 billion shares x (kshs 36.38 – kshs 34 per share) = kshs 14.3 billion).
Furthermore, the report also raised alarm about the potential of losing the long-term dividend streams. For example, looking at past dividend payments, the government may lose up to kshs 1.2 trillion for the next 30 years.
This amount cannot be compared with the kshs 204 trillion ( kshs 34 x 6 billion shares) the government will receive from the sale. This transaction can be equated to an exchange of long-term gain for short-term fiscal relief.
Besides, Vodacom now holds 55% of the shares while the Kenyan government holds 20% of the shares. The remaining shares are held by individual and corporate shareholders.
The kshs 204 Trillion Sale
The government is telling the country that the 204 trillion from the sale was allocated to:
a. The National Infrastructure Fund (Digital Infrastructure, Water and Irrigation Infrastructure, Energy Grid Expansion, Transport and Logistics, etc.).
b. The Sovereign Wealth Fund.
How Such Deals Affect Everyday Taxpayers
When high-value public assets are sold below their true economic worth, the impact trickles down to every Kenyan household.
a. The Replacement Tax Burden
When the state undercuts its revenue from asset sales, the fiscal deficit does not disappear. It often returns in the form of new consumer taxes, higher fuel levies, or tighter compliance pressures on small businesses trying to survive.
b. Loss of Intergenerational Wealth
Safaricom is not just another listed company. Through M-Pesa and core digital infrastructure, it is deeply woven into Kenya’s economy. Giving up lucrative state shares means future generations lose out on steady and reliable government dividends that could fund public services.
c. Erosion of Public Trust
When citizens watch state-owned stakes in highly profitable companies sold under questionable valuations, it breeds deep cynicism. People wonder why everyday workers must struggle with high PAYE and VAT while public wealth is seemingly discounted.
Practical Steps Taxpayers Can Take
You do not have to sit back passively while major public transactions unfold. Here are seven practical ways everyday citizens and taxpayers can engage in, push for transparency, and protect national assets.
a. Follow Public Participation Processes
Major privatization deals legally require public input. When parliamentary committees or regulatory bodies call for public views on state transactions, make your voice heard. Submit memoranda or share critiques through civic platforms. Public pressure forces leaders to pay attention.
b. Support Civil Society and Public Interest Litigation
Many accountability victories in Kenya, such as court orders temporarily freezing controversial asset sales, are driven by active petitioners and civil society groups. Supporting legal accountability mechanisms helps ensure transparency checks remain strong.
c. Track Government Budgeting and Debt Utilization
Stay informed about how the National Treasury manages public debt and asset monetization. Knowing whether proceeds from asset sales actually reduce structural debt or simply fund recurrent expenditure helps taxpayers demand better fiscal management.
d. Engage in Civic Education on Economic Policies
Understanding terms like ‘equity dilution,’ ‘dividend monetization,’ and ‘intrinsic asset valuation’ removes the mystery from national economics. Read reports from independent think tanks like KIPPRA to the National Assembly about the government’s divestment from Safaricom to understand the true value of public enterprises.
e. Hold Elected Representatives Accountable
Your members of parliament sit on committees that review privatization reports and Treasury proposals. Write to or engage your local representatives to demand that they prioritize long-term national interests over quick cash fixes.
f. Promote Local Economic Literacy
Talk about economic literacy within your professional networks, chama groups, and community forums. Economic sovereignty is not just a government responsibility. It is a community conversation. Informed citizens are harder to ignore.
g. Demand Stronger Regulatory Oversight
Push for strict enforcement by bodies like the Capital Markets Authority (CMA) and the Communications Authority (CA) when strategic assets change hands. Ensuring independent regulators have absolute independence protects national interests and data sovereignty.
Safeguarding Our Collective Future
Public assets like Safaricom represent decades of national investment and economic growth. When deals are rushed or undervalued, taxpayers bear the hidden cost. By staying informed, participating in civic processes, and demanding absolute transparency, everyday Kenyans can help protect public wealth for generations to come.
Did the taxpayers lose? That is for you to decide.
Other Articles
a. How Tax Disputes Arise – HERE
b. Why Kenyan Taxpayers Are Stressed – HERE
c. How Fear of Tax Penalties Paralyzes Kenya Taxpayers – HERE
d. How Taxpayers Can Survive Changing Tax Laws – HERE
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