NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has defended the government’s plan to sell its 15pc stake in Safaricom PLC, dismissing claims by former Deputy President Rigathi Gachagua that the process lacks public participation and undervalues a strategic national asset.
Speaking on Monday, Mbadi said the National Assembly has already issued a notice inviting Kenyans to submit their views, adding that the government is still at the proposal stage and has not finalised the transaction without public input.
“We have just done what we call proposal instigation; now Kenyans need to speak. This is what we call public participation, and they will speak through Parliament. The National Assembly has already advertised,” Mbadi said. “I heard senior leaders yesterday saying there is no public participation. What do you mean there is no public participation when it is already taking place?”
His remarks were a direct response to Gachagua, who on Sunday accused the government of quietly pushing through the sale without consulting the public, comparing the move to disposing of a productive asset to solve short-term financial pressures.
“Safaricom is being sold without public participation,” Gachagua said. “It’s like having a cow in your home that produces a lot of milk. Now you decide to sell that cow, yet you don’t have another one, just so you can buy food for that day.”
Gachagua further argued that the government is selling its shares at a price far below market value, claiming Safaricom stock should be worth between Sh70 and Sh80. At the current transaction price of Sh34 per share, he alleged the country stands to lose about Sh250 billion.
Safaricom announced on December 4 that it had received a notice of intention from Vodafone Kenya to acquire an additional 6,009,814,200 ordinary shares representing 15pc of its issued stock. The government has agreed to sell the stake at Sh34 per share, amounting to Sh204.3 billion ($1.6 billion).
It will also receive Sh40.2 billion upfront in lieu of future dividends, placing the total value of the deal at Sh244.5 billion.
The planned transaction has triggered significant public debate, given Safaricom’s position as Kenya’s most profitable company and a key source of revenue for the state. The telecommunications giant has historically contributed between Sh18 billion and Sh20 billion annually in dividends.
While critics like Gachagua argue that selling a portion of such a profitable enterprise risks weakening long-term public revenue streams, government officials maintain that the sale is part of broader fiscal reforms intended to unlock value, stabilise the national budget, and attract investment.
The National Assembly is expected to hold hearings and receive submissions from stakeholders before making its recommendations to the Treasury.
