Mbadi Says Vodacom Buyout Offer Gives Shareholders Better Value Than NSE Price

By Benadeta Mwaura - Reporter

Kenya, January 13, 2026 - Treasury Cabinet Secretary John Mbadi has defended the proposed Vodacom Group buyout of minority shareholders, saying the offer provides better value than the company’s current trading price on the Nairobi Securities Exchange (NSE) and reflects broader realities in Kenya’s capital markets.

Speaking amid growing debate over the deal, Mbadi said the offer price is above Vodacom’s prevailing market valuation, arguing that shareholders should assess the transaction not just on daily price movements but on long-term market conditions and liquidity challenges at the NSE.

“The offer on the table is more attractive than the current NSE share price,” Mbadi said, adding that the government is keen to ensure fair value for Kenyan investors while maintaining the country’s reputation as an investment-friendly market. Vodacom Group is seeking to buy out minority shareholders as part of a move that could ultimately lead to the firm delisting from the Nairobi bourse.

The transaction has attracted close scrutiny from investors, regulators and policymakers due to Vodacom’s role as a major regional telecoms player with deep economic links to Kenya. Market data shows that Vodacom shares have been trading below historical highs, mirroring a broader slump at the NSE that has seen subdued turnover, weak investor sentiment and persistent foreign outflows over the past two years.

Mbadi said these factors make it difficult to rely solely on market prices as an indicator of fair value. “In a thin and depressed market, share prices do not always reflect the intrinsic value of companies,” he said. Analysts say several factors have weighed on share prices at the Nairobi Securities Exchange, including:

1. Reduced participation by foreign investors

2. High interest rates diverting capital to government securities

3. Currency volatility and macroeconomic uncertainty

More from Kenya

Newcastle Defend EFL Cup Title Against Man City at St James’ Park

Somalia Cancelled UAE Agreements to Protect Sovereignty, says President

4. Low liquidity in some counters, making price discovery inefficient

These conditions, they argue, can suppress valuations even for fundamentally strong firms. Despite Mbadi’s reassurance, some minority shareholders have raised concerns about transparency, valuation methodology and timing, questioning whether the offer fully compensates them for future growth prospects in Kenya’s telecoms market.

Investor lobby groups have also called for robust regulatory oversight by the Capital Markets Authority (CMA) to ensure that shareholders are treated equitably and have access to sufficient information before making decisions. The Treasury says it is working closely with regulators to ensure the process complies with capital markets rules, including disclosure requirements and shareholder protections.

The Vodacom deal comes at a time when Kenya is grappling with delistings, low IPO activity and declining retail investor participation at the NSE. Policymakers see the transaction as a test case for how Kenya balances investor protection, market development and foreign investment attraction.

Mbadi said the government remains committed to strengthening the capital markets, adding that reforms aimed at improving liquidity, governance and confidence are ongoing. “Kenya wants a vibrant capital market, but we must also be realistic about current market conditions and ensure investors are not disadvantaged,” he said.

Minority shareholders are expected to review the final offer documents before deciding whether to accept the buyout. Regulatory approvals and shareholder votes will determine the ultimate outcome of the transaction. If successful, the deal could mark one of the most significant telecoms-related corporate actions in Kenya in recent years, and reignite debate over valuation, delistings and the future of the NSE.