Former Cabinet Secretary Moses Kuria has redirected the national conversation on the government’s proposed sale of its 15 percent stake in Safaricom, arguing that the bigger issue lies in the structural weaknesses of Kenya’s capital markets.
Speaking on social media, Kuria contended that focusing solely on Safaricom’s shares misses deeper challenges affecting the Nairobi Securities Exchange (NSE).
Kuria questioned why many listed companies remain undervalued, highlighting that Safaricom, once trading at KES 45 per share three years ago, has dropped to KES 34.
“The elephant in the room is that our capital markets need a lot of work. Safaricom is NOT the issue,” he noted, pointing to persistent market inefficiencies.
The lawmaker also raised concerns about liquidity in the stock market, observing that most counters struggle to attract active trading.
With only 62 companies listed on the NSE despite the market’s 71-year history, Kuria argued that meaningful growth has been minimal over the past three decades, echoing his experiences as a former trader on the trading floor.
Kuria’s intervention came amid ongoing debates sparked by Kiharu MP Ndindi Nyoro, who has publicly opposed the government’s plan to sell its Safaricom shares to Vodacom.
While Nyoro’s focus remains on the pricing and timing of the sale, Kuria suggested that policymakers and investors should address systemic weaknesses in Kenya’s equities market to prevent recurring valuation and liquidity problems.
Analysts note that Kenya’s capital markets have historically faced challenges related to investor participation, regulatory gaps, and market depth.
Kuria’s call to widen the discussion beyond the Safaricom share sale reflects a growing concern among some industry stakeholders about the sustainability and inclusivity of the nation’s stock trading environment.
The debate comes at a time when Kenya is seeking to deepen financial markets, improve transparency, and encourage broader investment in listed companies.
Kuria’s perspective shows the need for reforms that go beyond high-profile asset sales and target fundamental improvements in market operations.