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Treasury and Economic Planning Cabinet Secretary John Mbadi has assured Kenyans that the government does not intend to keep increasing taxes to finance development projects.
Speaking during a privatisation forum at Migori Teachers’ Training College (TTC), Mbadi said the government recognises that Kenyans are already heavily burdened and will therefore explore alternative revenue sources.
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These include privatising state-owned enterprises and selling shares in government-owned companies to raise funds for development while enhancing the country’s industrial competitiveness in the region.
He revealed that the planned sale of a 15 per cent stake in Safaricom is aimed at unlocking resources for long-term infrastructure development. According to Mbadi, the proceeds are expected to support projects such as road construction without adding to the national debt or imposing additional taxes.
“Privatisation is meant to create wealth and expand the business environment beyond Kenya, positioning the country as a regional economic hub,” he said.
The forum, which brought together members of the public, civil society groups and representatives of the Migori students’ union, called on the CS to give due consideration to views expressed through public participation.
In response, Mbadi said he remains open to constructive input on public financial management and the policy framework guiding the budgeting process. He emphasised that meaningful public engagement is critical to ensuring transparency, accountability and effective use of public funds.
The CS clarified that privatisation should not be confused with taxation, describing it instead as a strategy to boost revenue, enhance efficiency and improve service delivery for Kenyans.
Participants at the forum urged the government to ensure that at least 70 per cent of jobs are reserved for local residents when privatising parastatals. The New South Nyanza Sugar (New SONY) Mill was cited as a key example.
The Migori-based mill was leased to Busia Sugar, a private firm that has been operating it since May 2025.
Mbadi noted that privatising sugar mills such as New SONY would help lower the cost of goods and services, improve quality, expand consumer choice, encourage innovation, cut bureaucratic delays and reduce corruption.
Migori Governor Ochilo Ayacko, who hosted the CS, underscored the importance of listening to citizens through public participation to ensure government policies reflect the needs of Kenyans.
He added that involving the public, particularly in the budgeting process, helps both county and national governments understand and prioritise what citizens value most.
