Taxpayers may have lost at least Ksh14.3 billion after the Treasury and Parliament approved the sale of Safaricom shares at a price below the valuation recommended by KIPPRA.
The State think tank advised a minimum price of Ksh36.38 per share for the government’s 15% stake, but the sale was approved at Ksh34 per share, raising Ksh204 billion instead of an estimated Ksh218.3 billion.
KIPPRA also warned that the government could forgo more than Ksh1.2 trillion in dividends over the next 30 years, far exceeding the sale proceeds.
The think tank questioned the lack of competitive bidding and inadequate disclosure on projects to be funded with the money. Despite presenting its analysis to parliamentary committees, KIPPRA’s recommendations were not included in the final report that approved the controversial transaction.
