Treasury Cabinet Secretary (CS) John Mbadi has defended the government’s decision to reduce its stake in Safaricom after cutting its shareholding from 35 percent to 20 percent.
Addressing the press on July 4, Mbadi said the government had already been a minority shareholder before the latest transaction, having held a 35 percent stake in the company, which has now been reduced to 20 percent.
“We were minority shareholders even before this divestiture. We had 35 percent, and now we have 20 percent. We will continue to be minority shareholders,” he said.
Mbadi added that the government could further reduce its stake in the future to raise funds for development projects, arguing that the State should focus on creating an enabling environment for businesses rather than operating commercial enterprises.
“The government has no business being in business. Business is for private people. Our role is to provide an environment for them,” he said.
On June 30, Vodafone Kenya Limited completed the acquisition of an additional 15 percent stake in Safaricom PLC from the Government of Kenya raising its stake to 55 percent.
CS Mbadi Speaks on National Infrastructure Fund
According to the CS John Mbadi, proceeds from the Safaricom share sale will be invested through the National Infrastructure Fund to finance commercially viable public infrastructure projects rather than being used for recurrent government expenditure.
The funds, he said, could finance projects such as the expansion of Jomo Kenyatta International Airport (JKIA) and the dualling of the Nairobi–Namanga Road to the Tanzania border.
He added that if the money goes to JKIA, Kenyans will see upgraded terminals, while investment in the Nairobi–Namanga Road would result in a dual carriageway and toll stations along the route.
Also Read: New Safaricom Ownership Structure After 15% Stake Sale
Court Rulings and Public Participation Process
At the same time, he warned the opposition parties against providing misinformation, while maintaining that discussions about the divestiture are welcome.
He said that the sale of the stake proceeded following the Court of Appeal’s decision lifting conservatory orders that had temporarily halted it after earlier orders issued by the High Court.
Also Read: Mbadi Explains How Govt Will Use KSh 244.5B from Sale of Safaricom Shares
According to him, the government acted within the framework established by those rulings and in line with the rule of law.
Questions raised on valuation, timing, and the strategic importance of the asset, he said, remain active issues before the High Court and will be resolved through the constitutional process. t.
He stated that he personally facilitated extensive public participation across former provinces, engaging stakeholders in Migori, Kakamega, Nakuru, Eldoret, Central Kenya, and the Coast, noting that only the broader northern region was not covered due to time constraints.
He added that Parliament, through a joint committee of the National Assembly, also conducted extensive consultations across the country.
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