Treasury Cabinet Secretary John Mbadi has defended the government's partial divestiture of its Safaricom shares, dismissing criticism from opposition leaders as political and maintaining that the transaction was lawful and transparent.
Speaking in Kisumu on Saturday, Mbadi said the sale was intended to finance commercially viable infrastructure projects through the National Infrastructure Fund and that the government would continue to respect the ongoing court process.
He was responding to criticism from opposition leaders, who have questioned the legality, timing and valuation of the transaction.
"The action taken by the government in respect of shares in Safaricom is a deliberate strategic move to sustain the social contract between the people and their government. Attempts to confuse the public through misinformation and disinformation cannot remain unchallenged," Mbadi said.
He said while every Kenyan has a constitutional right to challenge government decisions in court, leaders should avoid making definitive claims on matters awaiting judicial determination.
"The government has participated fully in the proceedings and will abide by the final determination of the court. We have respected every court order issued so far and will continue doing so," he said.
Mbadi said the High Court had initially issued conservatory orders stopping the transaction, but the Court of Appeal later lifted the temporary orders, allowing the sale to proceed.
According to the CS, the transaction was undertaken under Section 87A of the Public Finance Management Act, 2012, after approval by the National Assembly and public participation conducted in line with Articles 10 and 118 of the Constitution.
He said he personally held public participation forums in Migori, Kakamega, Nakuru, Eldoret, Kiambu, Meru and Kilifi before Parliament considered the proposal.
"I took the initiative to conduct extensive public participation across the country. Parliament also carried out its own public participation through the relevant committees. This was not a rushed process," he said.
Mbadi challenged opposition leaders to demonstrate that they had similarly consulted Kenyans before opposing the transaction.
"I want to ask those who are contesting this divestiture, where have you conducted public participation? You cannot simply sit in your houses and claim to speak for Kenyans without consulting them," he said.
He accused the opposition of politicising government programmes instead of engaging on economic policy.
"They tried to politicise the Finance Bill. They failed. Now they are looking for another issue. Kenyans are becoming more informed and are demanding facts and alternatives instead of propaganda," he said.
Mbadi rejected claims that reducing the government's shareholding would undermine national interests, noting that the State was already a minority shareholder before the latest transaction.
"Before this exercise, the government owned 35 per cent of Safaricom, which already made us minority shareholders. Now we own about 20 per cent. We were already minority shareholders," he said.
He said he would support further government divestiture where it made economic sense.
"The government has no business being in business. Our role is to create the right environment for private investment. Around the world, governments do not succeed by running commercial enterprises," Mbadi said.
He also dismissed concerns that the government would lose future dividend income, saying the proceeds from the transaction outweighed annual dividend earnings.
"We are talking about raising approximately Sh240 billion. You cannot delay such a transaction because you are waiting for annual dividends of a few billion shillings. That is not prudent financial management," he said.
Mbadi said the proceeds had already been transferred to the National Infrastructure Fund and would finance commercially viable projects rather than recurrent expenditure.
He said the fund would support projects including the expansion of Jomo Kenyatta International Airport, major highways, irrigation schemes and investments in the energy sector.
"If the money is invested in JKIA, Kenyans will see the expanded terminals. If it goes into roads, they will see the roads. We are converting one public asset into another public asset instead of consuming the money through the budget," he said.
Mbadi said interviews for members of the National Infrastructure Fund board had been concluded and appointments would be announced within days.
"We listened to Kenyans. Their biggest concern was accountability, and we have ensured that competent people will oversee the fund," he said.
He said the government remained committed to the fund despite criticism.
"The journey has just begun. We are committed to this fund because we believe it is one of the solutions that will drive Kenya's economic transformation. We will not be derailed," Mbadi said.
