Nyeri: Nyeri residents have cautioned the government against proceeding with the proposed divestiture of 15 per cent of state-owned shares in Safaricom to the Vodacom group. Speaking at a public participation forum held at the Nyeri cultural centre, the residents voiced concerns over transparency regarding the utilisation of the Sh240 billion expected from the sale of over 6.01 billion shares.
According to Kenya News Agency, residents also expressed concerns over data protection and the long-term economic impacts of the planned divestiture on future generations. Ian Gichuki, a participant, questioned the government’s ability to manage the proceeds and sought assurances that the funds would be directed towards priority sectors like energy and infrastructure. He raised doubts about the timing and motive of the proposed sale, noting past instances where fiscal discipline was questioned by independent bodies.
Gichuki emphasized the need for the government to incorporate public views before making a final decision on the divestiture, fearing the exercise might be mere formality. Njeri Mwangi, another resident, warned that selling public shares could burden future generations and expose Kenyan data to cybersecurity and digital sovereignty risks. She argued that Safaricom is a uniquely Kenyan success story and cautioned against relinquishing control of such a strategic national asset.
Mwangi urged the government to consider alternative financing mechanisms like Initial Public Offerings (IPOs) to avoid unforeseen technological risks, including emerging artificial intelligence threats. Samuel Theuri, another speaker, challenged the government to prioritise the fight against corruption as a means of raising development funds. Citing former President Uhuru Kenyatta, Theuri noted the country loses Sh2 billion daily to corruption and urged recovery of these funds as a straightforward way to pool resources for national development.
The State plans to reduce its Safaricom ownership to 20 per cent through this divestiture, with shares priced at Sh34 each to generate funds for key infrastructural projects. Dr Chris Kiptoo, Principal Secretary for Treasury and Economic Planning, stated that the divestiture aims to raise funds without incurring new debt, arguing that the Sh34 selling price offers market value for money.
The nationwide exercise is led by a joint committee of the National Assembly, chaired by the Vice Chair of the Select Committee on Public Debt and Privatization, Irene Njoki. Legislators assured participants that their views would be documented and considered, reiterating the constitutional requirement for public participation in policymaking.
