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Treasury Cabinet Secretary John Mbadi has defended the government’s decision to sell part of its stake in Safaricom, dismissing criticism from opposition leaders as politically motivated and insisting the transaction was conducted legally and transparently.
Speaking in Kisumu on Saturday, Mbadi said the partial sale was aimed at raising funds for commercially viable infrastructure projects through the National Infrastructure Fund, adding that the government would continue to respect the ongoing court process.
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He was responding to opposition leaders who have questioned the legality, timing and valuation of the share sale.
“The government’s decision regarding its Safaricom shares is a deliberate strategic move aimed at strengthening the social contract between citizens and the State. We cannot allow misinformation and disinformation to mislead the public,” Mbadi said.
He noted that while every Kenyan has the constitutional right to challenge government decisions in court, political leaders should avoid making conclusive statements on issues still before the judiciary.
“The government has fully participated in the court proceedings and will abide by the final verdict. We have complied with every court order issued and will continue to do so,” he said.
Mbadi explained that although the High Court had initially halted the transaction through conservatory orders, the Court of Appeal later lifted the temporary orders, allowing the sale to proceed.
According to the CS, the divestiture was carried out under Section 87A of the Public Finance Management Act, 2012, after receiving approval from the National Assembly and undergoing public participation in accordance with Articles 10 and 118 of the Constitution.
He said he personally led public participation forums in Migori, Kakamega, Nakuru, Eldoret, Kiambu, Meru and Kilifi before Parliament debated the proposal.
“I undertook extensive public participation across the country, and Parliament also carried out its own consultations through the relevant committees. This was a thorough process, not a rushed one,” he said.
Mbadi challenged critics of the transaction to demonstrate whether they had similarly consulted Kenyans before opposing it.
“Those contesting this divestiture should tell Kenyans where they conducted public participation. You cannot claim to represent citizens without first seeking their views,” he said.
He accused the opposition of turning government programmes into political campaigns instead of offering alternative economic policies.
“They attempted to politicise the Finance Bill and failed. Now they have shifted to another issue. Kenyans are becoming more informed and want facts, not propaganda,” he said.
Mbadi dismissed claims that the reduced government stake would compromise national interests, noting that the State had already been a minority shareholder before the latest sale.
“Before this transaction, the government owned 35 per cent of Safaricom, which already made us minority shareholders. We now hold about 20 per cent,” he said.
He added that he would support further government divestitures where they are economically beneficial.
“The government’s role is not to run businesses but to create an enabling environment for private investment. Globally, governments are more successful when they focus on regulation rather than commercial enterprises,” Mbadi said.
He also rejected concerns that the government would lose future dividend income, arguing that the proceeds from the sale far exceeded annual dividend returns.
“We are raising approximately Sh240 billion. It would not be prudent financial management to delay such a transaction simply to earn annual dividends worth only a few billion shillings,” he said.
Mbadi said the proceeds had already been deposited into the National Infrastructure Fund and would be invested in commercially viable development projects instead of financing recurrent government expenditure.
He said the fund would support initiatives such as the expansion of Jomo Kenyatta International Airport, construction of major highways, irrigation programmes and energy sector investments.
“If the funds are invested in JKIA, Kenyans will see expanded terminals. If they go into roads, people will see new roads. We are converting one public asset into another rather than spending the money on recurrent expenses,” he said.
The CS also announced that interviews for members of the National Infrastructure Fund board had been completed, with appointments expected within days.
“We listened to Kenyans, and their biggest concern was accountability. We have ensured that qualified individuals will oversee the fund,” he said.
Mbadi maintained that the government remained committed to the initiative despite criticism.
“This is only the beginning. We believe the National Infrastructure Fund is one of the key drivers of Kenya’s economic transformation, and we remain committed to its success,” he said.
