Safaricom : who’s to blame? 

As President Mwai Kibaki took power in 2003, a major secret deal was being finalized behind everyone’s back.

According to the latest issue of The East African, ghoul faces said to be elites in the former regime made a cool  Ksh740 million ($10 million) in gains after disposing 5% of their stake in Safaricom to Vodafone PLC.

It has been in the public domain that, Safaricom is controlled by the Government through Telkom and British mobile phone giant Vodafone Plc. The revelations of a third phantom Company have greeted everyone with awe and the ball is in the government’s court and that of the capital market to unmask this elites.

Vodafone’s’ shares in Safaricom as at January 2003 stood at 30%, says The East African and later at 35% after the said deal was finalized.

It is now unclear who control the remaining 5% after the said transactions since Vodafone’s’ disclosure in its annual accounts says it only holds a 35% in the most profitable company in
Kenya.

The said company referred to as Mobitelea Ventures Ltd, is not registered with the registrar of Societies in
Kenya.

These new development puts the government, Safaricom and Vodafone on the spot light as to who is fooling who.

Safaricom went to the capital market in May 2001 to issue a 4 billion bond and as required it declared its true owners as Vodafone with 40% and Telkom with 60%.

Safaricom has issued dividends to its two parents and shared it according to their shareholding. If indeed, Mobitelea exits, did it receive the dividend since its entitled to? If it ever received how was the cash channeled and from who?

Does Ndolo Ayah as the Chairman of Safaricom know something we don’t know?  

Has Vodafone been coercing with the said elites to hide their true identity?

Was the capital market authority compromised as Safaricom issued the Bond at the capital market?

Well I can only point my finger to a few people, Safaricom board through its CEO and Chairman Michael Joseph and Ndolo Ayah. Vodafone’s officials and the Treasury through its officials like the Investment Secretary.    

Well only time will tell. As Safaricom goes public, all faces behind it will surface and the culprits exposed.