Ruto tells off Ndindi Nyoro
President William Ruto has responded to Kiharu MP Ndindi Nyoro’s criticism regarding the government’s plan to partially divest its stake in Safaricom. He accused Nyoro of engaging in political trickery and misleading the public about the valuation and sale of public assets.
While speaking at State House in Nairobi during a meeting with graduate interns involved in the Affordable Housing Programme on Friday, the President stood by the government’s privatization strategy. He emphasized that this approach is intentional and transparent, aimed at gathering resources for significant national development.
Ruto explained that the government believes divestiture is a smart way to unlock capital while also increasing public involvement in key assets. He pointed to the Kenya Pipeline Company’s initial public offering and the sale of Safaricom shares as prime examples.
He mentioned that the government anticipates raising around Ksh.110 billion from the Kenya Pipeline IPO and an additional Ksh.240 billion from the partial divestiture of Safaricom. He stated that these funds would be used to unlock between Ksh.3 trillion and Ksh.4 trillion for various development projects.
You’ll often hear some folks asking, “Why are you doing this? This is wrong.” Ironically, these are the same people who once said, “Let’s go for it.” Now, as we talk about divesting a part of Safaricom, they’re questioning who was involved in the negotiations and where the committee that set the share price is.
Seriously? In any publicly listed company, the reliable and transparent valuation is handled by the Capital Markets at the Exchange, not behind closed doors in boardrooms or committees,” Ruto remarked.
“I want to address those who are lecturing us about our plans for the IPO in KPC or Safaricom. They should save us from their political games and misleading arguments.”
The president also expressed his strong belief in his administration’s capability to raise Ksh.5 trillion by next year, kickstarting the journey to elevate Kenya to first-world status.
“This isn’t about politics or the upcoming elections; it’s about transforming Kenya. We’ve already begun the process of securing the funds needed. I mentioned Ksh.5 trillion, and there will be no delays. By next year, we’ll have it all raised,” he emphasized.
His comments were a direct reply to concerns voiced by Ndindi Nyoro during the Joint Committee on Finance and Privatisation meeting on Tuesday, January 20.
The Kiharu MP has raised concerns that the country could lose out on billions of shillings if the Safaricom share sale isn’t put through a competitive international bidding process.
Nyoro claimed that the six billion Safaricom shares set for sale should be valued at Ksh.45 each instead of Ksh.34, arguing that the suggested price doesn’t reflect the true worth of the asset.
“We shouldn’t even be considering anything below Ksh.45 per share, but it feels like we’re being held hostage by the buyer, and we’re running out of options,” Nyoro expressed.
Meanwhile, other key players, including Central Bank of Kenya Governor Kamau Thugge and the Central Organisation of Trade Unions (COTU), have shown their support for the initiative, stating that it could help alleviate the country’s debt challenges.
Ruto tells off Ndindi Nyoro
