John Mbadi
Treasury Cabinet Secretary John Mbadi has sought to allay public fears over the government’s intentions regarding Safaricom.
He insisted that the State is not selling the telecommunications giant. Instead, the State is divesting a portion of its shares through the open market.
Amid growing public debate and political criticism, Mbadi clarified the situation. He emphasized that the move should not be misconstrued as a withdrawal by the government from Safaricom. It is also not a loss of strategic control.
He explained that divestment is a normal financial practice. It aims at unlocking value from public assets. It also supports broader fiscal objectives.
It should be understood that we are not selling Safaricom. “We’re divesting the shares in the market,” Mbadi said. He underscored that the process will be transparent. It will be conducted in line with existing laws and market regulations.
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According to the CS, the planned divestment is part of a wider strategy to mobilize domestic resources.
This will reduce pressure on public borrowing and deepen Kenya’s capital markets.
The government plans to release shares to the market. It hopes to attract more local and institutional investors. This will increase liquidity at the Nairobi Securities Exchange (NSE).
Mbadi noted that Safaricom remains a profitable company. It is strategically important as it contributes significantly to government revenues through taxes, dividends, and employment.
He reassured Kenyans that the State will retain a meaningful stake. No decisions have been made that would jeopardize national interests or critical infrastructure.
The announcement comes at a time when the government is exploring alternative financing options. They aim to fund development projects. They also seek to manage rising public debt.
Economists have argued that partial divestment of mature state assets can provide much needed fiscal space without increasing the tax burden on citizens.
However, the move has sparked mixed reactions, with some leaders and members of the public calling for greater disclosure on the timing, size, and use of proceeds from the divestment.
Mbadi promised continued engagement and clear communication as the process unfolds.
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