How Safaricom Sale Was Undervalued - Accountants to Parliament

Hello and welcome to the Money News Roundup Newsletter, where we are covering accountants' analysis of the government’s sale of Safaricom shares. We also cover new fuel prices taking effect on February 14.

Ksh34 Per Safaricom Share is Undervalued - Accountants to Parliament

The Institute of Certified Public Accountants of Kenya (ICPAK) has raised concerns over the valuation used in the government’s planned sale of a 15 per cent stake in Safaricom to Vodacom, warning the deal may significantly undervalue the telecoms firm. 

As reported by the Business Daily, the transaction values Safaricom shares at Ksh34 each and would see the Treasury earn about Ksh204.3 billion in addition to around Ksh45 billion for an advanced dividend payout.

ICPAK told Parliament that the pricing relies heavily on a 33.9 per cent premium to Safaricom’s average trading price over the 180 days before Vodacom filed its disclosure, a method it says depends on historical market data rather than the company’s intrinsic value.

ICPAK chairperson Professor Elizabeth Kalunda said the approach fails to adequately reflect Safaricom’s future earnings, long-term growth prospects, sector outlook, and strategic importance to the State.

She warned that the valuation may not fully capture Safaricom’s future cash flows or its central role in Kenya’s digital economy, and called for greater transparency to strengthen public confidence in capital markets.

The submissions were made to a joint sitting of the National Assembly’s committees on Finance and National Planning, and Public Debt and Privatisation.

If approved, Vodacom’s stake rises to 55 per cent, giving it effective control of the company.

The government will retain a 20 per cent stake in Safaricom, but accountants warned that the increased Vodacom control could limit the State’s influence over the telco’s strategic direction.

800,000 Learners Yet to Report to Grade 10 Over Fees 

More than 830,000 Grade 10 learners have yet to report to senior schools, citing high fees, transport costs, and delayed bursaries.

According to Nation, only 301,701 of the 1,130,459 candidates who sat the 2025 Kenya Junior School Education Assessment have reported, with boys slightly outnumbering girls.

Most students joined sub-county schools (41%), followed by extra-county (25%), national (18%), and county schools (15%).

Parents report struggling to raise Ksh22,000 or more for first-term fees, uniforms, and boarding, despite the government releasing Ksh44.2 billion in capitation. 

Authorities said no learner will miss school, with bursaries and scholarships, including the Elimu Scholarship, still being processed. Reporting and admissions will remain open digitally until Friday to ensure all students join the senior school.

Kenya Railways to Build Railway Line from CBD to Talanta Stadium 

Kenya Railways has warned of further demolitions along the Nairobi commuter rail corridor as it prepares major infrastructure projects ahead of the 2027 Africa Cup of Nations (AFCON). 

The developments include a new railway station near Nyayo National Stadium and a spur line linking Nairobi Central Station to Nyayo, Kibera, and Talanta Sports City Stadium to improve commuter transport during the tournament.

As reported by Eastleigh Voice, the corporation said the works require the repossession of railway land, noting that all encroachers were issued with notices well in advance to vacate the corridor. 

Any illegal structures remaining on the land will be demolished at the owners’ risk and cost. 

Kenya Railways insisted the exercise is lawful, non-selective, and aimed at protecting public land to ensure the timely delivery of critical transport infrastructure for AFCON 2027.

EPRA Reduces Fuel Prices by Ksh2

The Energy and Petroleum Regulatory Authority (EPRA) has reduced fuel prices for the January–February pricing cycle, offering relief to motorists and households. 

As reported by People Daily, Super Petrol has dropped by Ksh2 per litre, while Diesel and Kerosene have each decreased by Ksh1 per litre.

In Nairobi, Super Petrol now retails at Ksh182.52 per litre, Diesel at Ksh170.47, and Kerosene at Ksh153.78. 

EPRA said the prices had dropped because the average landed cost of Super Petrol, Diesel, and Kerosene declined between November and December 2025.

Cash Handled by Mobile Money Agents Drops by Ksh430B

The value of cash handled by mobile money and bank agents fell by a record Ksh430.3 billion in the first 11 months of last year, signalling a shift away from cash-based transactions. 

Central Bank of Kenya (CBK) data shows agents handled Ksh7.514 trillion between January and November, down from Ksh7.944 trillion in the same period in 2024.

According to the Business Daily, analysts attribute the decline to tighter liquidity, high interest rates that encourage savings in interest-bearing accounts, and the growing use of digital payments for everyday transactions. 

Increased tax scrutiny and stronger monitoring of large cash movements have also pushed individuals and businesses toward traceable electronic channels.

Despite the drop in cash handled by agents, economic indicators such as GDP growth, money supply, and market activity point to improved overall economic performance, suggesting changing payment habits rather than economic distress.

Spacecoin Receives Licence to Offer Satellite Internet Services

American startup Spacecoin has received regulatory approval to roll out satellite internet services in Kenya, setting up competition for Starlink, which currently dominates the country’s satellite connectivity market. 

Through its parent firm, Space Telecommunications Inc., Spacecoin will deploy satellite internet in underserved areas of Kenya and Nigeria, aligning with government efforts to expand last-mile connectivity.

Spacecoin’s entry is expected to challenge Starlink, which controls over 98 per cent of Kenya’s satellite internet market, potentially lowering prices and widening access.

Founded by Tae Oh, the firm positions itself as a lower-cost alternative using open-source satellite technology and plans to work with local partners rather than selling directly to users.

The company has launched four satellites for its initial constellation and says it is scouting Kenyan partners ahead of service rollout. Read more.

US Halts Visa Processing for Uganda and Tanzania

Uganda and Tanzania are among 75 countries affected after the Trump administration announced it is suspending immigrant visa processing, escalating its crackdown on immigration. The U.S. State Department said the pause targets countries whose immigrants allegedly rely on American welfare at unacceptable rates.

As reported by NBC News, several African nations are on the list, including Somalia, Egypt, Nigeria, Ghana, Ethiopia, Rwanda, Senegal, South Sudan, Sudan, Libya, Morocco, Tunisia, Sierra Leone, Liberia, Guinea, Gambia, Democratic Republic of the Congo, Republic of the Congo, Cameroon, Eritrea, and Cape Verde.

The suspension applies to immigrant visas for those seeking permanent residence but does not affect temporary visas for students, tourists, or workers. It takes effect January 21 and will remain in place while the US reviews immigration procedures to prevent abuse of public benefits.

EABL Chief Finance Officer Risper Ohaga Exits

East African Breweries Limited (EABL) chief financial officer Risper Ohaga will leave the brewer at the end of June, bringing to a close a six-year tenure.

As reported by the Business Daily, the company said Ohaga will exit on June 30 to pursue personal career interests, allowing time for an orderly transition, with her successor to be named later.

Her departure comes as EABL undergoes a major ownership transition, following plans by parent company Diageo to sell its 65 per cent stake to Japan’s Asahi Group, which will take control of the brewer.

Ohaga joined EABL in February 2020 from Absa Group, steering the company through the Covid-19 period, leading the 2021 and 2025 medium-term note issuances, and strengthening investor relations.