Kenya is on the cusp of one of its biggest-ever financial decisions selling a 15 stake in Safaricom, the company that powers its digital economy. The deal would hand control of Kenyas most valuable company to a foreign entity and put a colossal USD 1.6 B into state coffers. But a heated debate is raging over whether the price is right, or if Kenya is selling its crown jewel on the cheap. The differences have found its way to parliament where debates formally kicked off last week and remains ongoing.
The government is in advanced talks to sell 6 billion shares to South Africas Vodacom at KES 34.00 each, which would give the South African firm a commanding 55 ownership. The National Treasury insists this is a fair price and a necessary move to raise money for roads, dams, and power projects without taking on more debt.
However, critics from accountants to lawyers argue the math is flawed. They say the government is using a questionable calculation and, in doing so, risks giving up long-term income and control over an asset as vital as the nations digital waterworks for a short-term cash fix.
