The Nairobi Securities Exchange (NSE) has emphasised that Kenya’s planned sale of a 15 per cent stake in Safaricom Plc must go through the exchange to ensure transparency and stability.

In a memorandum to the National Assembly, the NSE warned that carrying out the transaction as an off-market private deal could undermine investor confidence and obscure how the final price is determined.

The bourse said its Block Trading Board is the most suitable platform for handling such a large transaction without disrupting normal market activity.

“The Block Trading Board is best suited to handle a transaction of this size without disrupting normal market trading.”

The exchange explained that the Block Trading Board provides a regulated framework, with real-time reporting, clear price governance, and strict settlement controls.

Off-exchange deals, it said, would introduce unnecessary risks and remove the independent market reference needed to determine fair value.

“Bypassing the exchange in favour of an off-market private deal would raise concerns around price transparency and market confidence.”

The agreed sale price of Sh34 per share represents a 23.6 per cent premium over the six-month volume-weighted average price up to December 2, 2025. The NSE noted that a transaction executed on the exchange would signal to global investors that Kenya can handle large and complex equity deals under a strong regulatory framework.

The bourse also dismissed concerns that the sale could destabilise capital markets, describing it instead as a market-deepening move.

An exchange-based, premium-priced transaction is expected to improve liquidity in Safaricom shares by strengthening order-book depth and narrowing bid-ask spreads.

To safeguard long-term interests, the NSE recommended a 10-year strategic investor lock-in, which would prevent Vodacom or Vodafone from transferring or encumbering the acquired stake without approval from the National Assembly. The NSE said the measure would ensure long-term alignment between Safaricom’s majority owners and Kenya’s broader economic interests.