Nairobi, Jan. 14 -- Analysts have raised concerns over the valuation method used to determine the Sh34 per share price at which the government is selling a 15 percent stake in Safaricom to South Africa's Vodacom Group Limited, warning the deal could be undervalued.

They further warn that the transaction will give the multinational a controlling 55 percent stake in what could limit the government's influence in the telco's strategic direction.

The Institute of Certified Public Accountants of Kenya (ICPAK) said that basing the transaction price primarily on a 33.9 percent premium to the trading price of Safaricom's shares in the 180 days before Vodacom filed its buyout disclosure relies on historical market data and liquidity conditions r...