ELDORET, Kenya — Treasury Cabinet Secretary John Mbadi has defended the government’s plan to partially sell its stake in Safaricom and list the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE), arguing that the strategy will unlock 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 could raise about Sh204 billion, funds he said would help ease pressure on public borrowing and support priority development programmes.
He dismissed criticism that the State risks undervaluing Safaricom or sacrificing reliable dividend income, insisting the move is part of a long-term asset management strategy rather than a fire sale.
“The debate on Safaricom must be grounded in facts, not emotion,” Mbadi said. “President Moi sold 40 per cent, and in 2008 President Kibaki released 25pc to the public. Both Kenyans and foreign investors took away 65pc from the government.”
Mbadi argued that Safaricom’s growth into East Africa’s most profitable listed company accelerated after it moved away from total government control.
“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 Treasury CS said maintaining a large shareholding in a mature and capital-intensive firm such as Safaricom places heavy financial obligations on the Exchequer, especially when the company undertakes major investments.
“When Safaricom invests, the government is required to inject billions of shillings as its 35pc share. From Safaricom, we project about Sh204 billion, which will directly support development priorities and ease pressure on taxpayers,” Mbadi said.
“The government cannot sit on mature assets while borrowing expensively elsewhere.”
Safaricom remains one of the State’s most valuable holdings, delivering steady dividends annually. Critics, including some opposition lawmakers and economists, have warned that reducing the State’s stake could weaken long-term non-tax revenue and expose the firm to greater foreign influence.
Mbadi, however, said those concerns must be weighed against the rising cost of public debt and the need to finance infrastructure, social programmes, and economic recovery without excessive borrowing.
The CS also defended plans to list the Kenya Pipeline Company, while retaining a 35pc government stake, saying the move would subject the firm to market discipline and reduce political interference.
“Listing KPC will subject it to market discipline, improve governance, reduce political interference and allow the company to raise its own capital instead of depending on the Exchequer,” he said.
Mbadi emphasised that KPC is a strategic infrastructure company but does not trade in fuel itself, instead operating as a transport system for oil marketers.
“Kenya Pipeline does not sell fuel; it is a transport system used by oil marketers. Privatisation, if done transparently, allows us to fund our own development,” he said.
The proposed Safaricom stake sale and KPC listing form part of the government’s broader privatisation and asset-recycling agenda, aimed at raising capital, improving efficiency in state corporations, and reducing reliance on debt financing.
Both proposals are expected to face intense scrutiny in Parliament and the public sphere, particularly as Kenyans grapple with the rising cost of living, tax pressures, and debates over the role of the State in strategic enterprises ahead of the 2027 General Election.
