Safaricom CEO Peter Ndegwa has clarified that Safaricom had no role in determining the share price during the transaction that saw Vodacom acquire a stake in the Kenyan telecom giant, sparking fresh debate over transparency and corporate governance.
Safaricom CEO Peter Ndegwa has publicly stated that the company was not involved in setting the price at which shares were sold to Vodacom, distancing the firm from one of the most scrutinised corporate transactions in Kenya’s telecom sector.
Speaking amid rising speculation and online debate, Ndegwa made it clear that Safaricom did not influence the valuation used in the deal, a revelation that surprised many investors and industry observers who had assumed the company played a central role in the pricing process.
“Safaricom was not involved in determining the price to sell the shares to Vodacom,” Ndegwa said.
Deal That Sparked Market Attention
The transaction, which allowed Vodacom to increase its stake in Safaricom, has been closely watched by analysts, regulators, and shareholders due to Safaricom’s dominant position in Kenya’s economy and telecommunications industry.
Until now, much of the public discourse revolved around how the valuation was reached and whether Safaricom management had negotiated the final terms.
Ndegwa’s remarks now suggest that the pricing was handled externally, potentially involving shareholders, regulators, or market-driven mechanisms rather than internal board decisions.
Questions Around Transparency and Impact
Following the statement, conversations have intensified across business circles, with some questioning how the process was structured and whether shareholders were adequately informed.
Market analysts note that while such arrangements are not unusual in large cross-border transactions, clarity is crucial to maintain investor confidence especially for a company of Safaricom’s scale and influence.
Despite the concerns, Safaricom has not indicated that the deal will affect its operations, strategy, or long-term growth outlook.
What This Means Going Forward
As more details emerge, attention will likely shift to:
- How the share valuation was independently arrived at
- Whether regulators were involved in approving the pricing
- The long-term implications for Safaricom shareholders
For now, Ndegwa’s clarification has added a new layer to the narrative, reinforcing the importance of transparency in major corporate transactions involving public-interest companies.
