Kuria Says Safaricom Row Misses Bigger Crisis, Urges Deep Capital Markets Reforms

Moses Kuria, former Senior Economic Adviser to the President, has called for a broader focus on the structural issues within Kenya’s capital markets.

Kuria dismissed the focus on Safaricom, arguing that the real concern lies in the systemic undervaluation of companies listed on the Nairobi Securities Exchange (NSE). He pointed out that Safaricom’s share price has fallen from Sh45 three years ago to Sh34 today, despite the company’s profitability. For Kuria, this reflects larger market failures rather than the fortunes of a single company.

He also highlighted persistent liquidity issues and the stagnation of the NSE, which, after 71 years, hosts only 62 listed companies. Reflecting on his experience on the trading floor over three decades ago, Kuria noted that little progress has been made in increasing market participation or restoring investor confidence. He urged policymakers to focus on reforms that would revitalise the market, attract foreign capital, and restore trust among domestic investors.

“The elephant in the room is that our capital markets need a lot of work,” Kuria said, warning that without substantial reforms, Kenya risks continued economic decline and reduced global competitiveness.

Meanwhile, Kiharu MP Ndindi Nyoro has criticised the government’s plan to sell part of its stake in Safaricom, arguing that the transaction undervalues the company. Nyoro noted that the government is selling at Sh34 per share, a significant reduction from previous sales at Sh45, particularly given the state’s recent investment in Safaricom’s Ethiopia expansion. 

He accused the government of prioritising self-interest over the public good, claiming the sale could result in substantial losses for Kenyans. Under the proposed deal, the government’s stake in Safaricom would decrease from 35 percent to 20 percent. 

The state is expected to receive an upfront payment of Sh40.1 billion, along with rights to Sh55.7 billion in future dividends from its remaining shares.