Technology Service Providers of Kenya (TESPOK) has urged that Safaricom’s share sale should not strengthen its market dominance or weaken regulatory oversight.
The association, on January 14, proposed a post-divestiture framework with the National Assembly and the Communications Authority of Kenya (CA) to ensure fair interconnection rates and spectrum allocation to ensure fair competition.
“With regard to market competition and regulation to prevent dominance, the Association has argued that the process must not reduce regulatory oversight or entrench Safaricom’s market dominance,” read part of the statement.
TESPOK is an association representing more than 130 organizations in Kenya’s technology ecosystem, including Safaricom PLC.
On December 4, 2025, Safaricom confirmed an ownership restructuring that saw Vodafone Kenya Limited acquire the Government of Kenya’s 15 percent stake in the telecom giant for Ksh244.5 billion.
The company revealed that it had received a Notice of Intention from Vodafone Kenya indicating plans to purchase 6.01 billion ordinary shares held by the government at KSh34.00 per share, a 21 percent premium over Safaricom’s closing price of KSh28.20.
TESPOK Proposals to Curb Market Dominance
TESPOK also proposed that the government should publicly disclose the valuation report and rationale for the disposal method to ensure transparency and fair market value.
To safeguard national security and data sovereignty, the association has recommended that the divestiture include mechanisms such as “golden share” provisions or limits on foreign ownership.
On national security and data sovereignty, TESPOK proposed mechanisms such as “golden share” provisions or limits on foreign ownership to protect critical digital infrastructure.
To maintain market stability and governance, the association recommended that the divestiture be implemented in a predictable, phased manner to avoid uncertainty in the sector.
Also Read: CS Mbadi Reveals How Ruto’s Govt Will Use Ksh 204 Billion from Safaricom Sale
Mbadi Details Ksh3B Spending on Advisors for 15% Safaricom Share Sale
The government is set to spend over Ksh.3 billion on transaction advisors and lawyers in the sale of its stake in Safaricom.
The deal will see the government sell at least 15 percent of its shares.
Appearing before a joint sitting of Parliamentary committees on Finance, National Planning, Public Debt, and Privatisation on January 13, Treasury Cabinet Secretary John Mbadi defended the move to allow Vodafone to be the sole buyer of the more than six billion shares held by the government.
Also Read: Safaricom Confirms Acquisition Plans of Govt’s Stake by Vodafone Worth Ksh 244.5 Billion
The CS clarified issues raised by members of the two committees, who questioned why the government had not opted for a competitive bidding process.
Lawmakers also expressed concerns over public participation, protection of minority shareholders, data security after the transaction, staff welfare, foreign exchange risks, and whether the proceeds would be ring-fenced for infrastructure projects.
Some legislators questioned why the government must sell 15 percent of its shares, a move that would give Vodafone a controlling stake, and why a lower percentage could not be offloaded to avoid ceding control.
In response, Mbadi stressed that the funds are not intended for budgetary support or to cover the fiscal deficit, adding that the money will be used exclusively to establish the seed capital for the National Investment Fund (NIF).
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