Kathwana: The government’s proposal to sell 15 per cent of its stake in Safaricom PLC has drawn mixed reactions, with calls for transparency and accountability dominating a public participation forum held at Kathwana County Hall.
According to Kenya News Agency, the forum was convened by the National Assembly’s Finance and National Planning Committee as part of a nationwide exercise to collect public views ahead of parliamentary debate on the proposal. Under the plan, the State intends to divest 6,009,814,200 shares, representing 15 per cent of its current 35 per cent holding in Safaricom, at Sh34 per share.
The sale is expected to raise approximately Sh204.3 billion, with total proceeds, including an upfront dividend component, estimated at about Sh244.5 billion. The transaction, which will be negotiated directly with South Africa’s Vodacom Group, would increase Vodacom’s stake in Safaricom to about 55 per cent. The move is aimed at mobilising funds for national development initiatives, including the proposed National Infrastructure Fund and the Sovereign Wealth Fund, without increasing public debt.
Lungalunga MP Mangale Munga Chiforomodo noted that residents support development but want clear assurances on how the funds will be utilised. ‘Residents are not opposing development. They want transparency and clearly defined projects that this money will finance,’ he said. Kitui Rural MP David Mboni, who is also a finance committee member, stated that the committee is touring counties to ensure constitutional requirements on public participation are fully met.
Mboni added that the government will only proceed with the sale after proper regulations are put in place to ensure the proceeds benefit ordinary Kenyans. ‘We will wait for proper regulations to ensure the sale of these shares serves its intended purpose and supports projects that directly benefit citizens,’ he said.
However, residents at the forum cautioned that without strict safeguards, the proceeds could be misused, citing experiences involving public funds. ‘We support development, but we have seen public funds disappear in the past without accountability. That is why we are worried that once these shares are sold, the money may not benefit citizens,’ said Betty Mutegi, a resident. Muthomi Josphat emphasized the need for the funds to be strictly used for the intended development projects and not diverted to other expenditures.
Some residents proposed alternative approaches, with Martin Murimi urging the government to explore other revenue sources instead of selling the shares. Nyaga John suggested the State should sell only 10 per cent, leaving the remaining shares accessible to ordinary citizens, including small-scale traders. Residents further called for the funds to be ring-fenced and tied to clearly defined development projects to prevent misuse.
