NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has defended the government’s plan to sell part of its stake in Safaricom and list the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE), saying the moves are aimed at unlocking billions of shillings for development while strengthening governance in state-owned enterprises.
Speaking in Uasin Gishu County on Sunday, Mbadi said the proposed Safaricom transaction alone is expected to raise about Sh204 billion, which he said would help ease pressure on public finances, reduce reliance on expensive borrowing and fund key development programmes.
He dismissed claims that the government is undervaluing the telecommunications giant, arguing that partial privatisation has historically strengthened Safaricom rather than weakened it.
“The debate on Safaricom must be grounded in facts, not emotion,” Mbadi said.
He noted that former presidents Daniel arap Moi and Mwai Kibaki oversaw the sale of a combined 65 per cent stake to local and foreign investors.
“Safaricom became the giant it is today after moving away from total government control. That was not a loss; it was smart asset management,” he said.
The CS acknowledged concerns that reducing the government’s shareholding could lower dividend income to the Exchequer but argued that holding a large stake in a mature company comes with significant financial obligations.
“When Safaricom invests, the government must inject billions of shillings to meet its 35 per cent shareholding requirement,” Mbadi said. “By selling part of this stake, we can redirect about Sh204 billion to development priorities and ease the burden on taxpayers.”
Mbadi said the government cannot afford to sit on high-value assets while borrowing at high interest rates to fund public projects.
On the planned listing of the Kenya Pipeline Company, the Treasury boss said the move would introduce market discipline, improve transparency and reduce political interference, while allowing the State to retain a 35 per cent stake.
“Listing KPC will strengthen governance, enhance accountability and allow the company to raise its own capital instead of depending on the Exchequer,” he said.
Mbadi stressed that KPC operates as a fuel transportation system rather than a fuel seller, adding that transparent privatisation would help the government mobilise resources for development without compromising strategic interests.
