Safaricom CEO Peter Ndegwa has effectively washed his hands of the controversy surrounding the government’s sale of a 15% stake in the telco giant. Appearing before a charged National Assembly Finance Committee, Ndegwa made it clear: The KSh 34 per share price tag was a Treasury directive, not a Safaricom boardroom decision.

The deal, which sees the South African-based Vodacom Group acquire the stake for approximately KSh 204.3 billion (plus a KSh 40 billion upfront sweetener), has raised eyebrows across the political divide. MPs, led by Committee Chair Kuria Kimani, grilled the CEO on whether the "family silver" was being sold at a discount. Ndegwa’s defense was simple: "We were the subject of the sale, not the transaction advisors."

Data Sovereignty Concerns

Beyond the money, the sale tips the scales of ownership significantly. Vodacom will now control a 55% majority stake, raising fears about the security of Kenyan data. Ndegwa moved to reassure the committee, citing the Data Protection Act of 2019.

• The Assurance: "The servers hosting the biodata of over 40 million Kenyans remain under local jurisdiction," Ndegwa insisted. "Ownership does not equate to data access."
• The Infrastructure Fund: The state defends the sale as necessary to raise seed capital for the National Infrastructure Fund, aiming to unlock development without new taxes.

A Done Deal?

Despite the parliamentary heat, the transaction appears to be a fait accompli. The government has chosen immediate liquidity over long-term dividends. For Ndegwa, the task now is to steer the ship with a new majority owner while keeping the Kenyan government—and the Kenyan public—happy. It is a delicate balancing act on a tightrope worth KSh 245 billion.