NAIROBI, Kenya, Jan 17 – The Nairobi Securities Exchange (NSE) has backed the National Treasury’s plan to sell a 15 percent stake in Safaricom Plc, but only if the transaction is executed through the NSE Block Trading Board.
In a memorandum to the National Assembly, the bourse warned that bypassing the exchange in favour of an off-market private deal would raise concerns around price transparency and market confidence.
The NSE said the Block Trading Board is best suited to handle a transaction of this size without disrupting normal market trading.
The exchange noted that executing the deal on the Block Trading Board would provide a regulated and verifiable framework, including real-time reporting, clear price governance and strict settlement controls.
It added that off-exchange execution would introduce unnecessary risks, while an exchange-based process would offer an independent market reference for the transaction price.
Subject to this structure, the NSE said the agreed price of Sh34 per share represents optimal value for the State, reflecting a 23.6 percent premium over the six-month volume-weighted average price to December 2, 2025.
According to the bourse, this would signal to global investors Kenya’s ability to execute large, complex equity transactions within a strong regulatory framework.
The NSE also dismissed concerns that the sale could strain capital markets, describing it instead as a market-deepening event.
It said a premium-priced, exchange-recorded deal would likely boost liquidity in Safaricom shares by improving order-book depth and narrowing bid-ask spreads.
To limit market volatility and protect long-term interests, the exchange proposed a 10-year strategic investor lock-in, which would prevent Vodacom or Vodafone from transferring or encumbering the acquired stake without National Assembly approval.
The NSE said the measure would ensure long-term alignment between Safaricom’s majority owners and Kenya’s broader economic interests.
